Tritax Big Box REIT plc ACQUISITION OF ARGOS REGIONAL DISTRIBUTION CENTRE (7444K)
21 April 2015 - 12:26AM
UK Regulatory
TIDMBBOX
RNS Number : 7444K
Tritax Big Box REIT plc
20 April 2015
20 April 2015
TRITAX BIG BOX REIT PLC
(the "Company")
ACQUISITION OF THE ARGOS REGIONAL DISTRIBUTION CENTRE, HEYWOOD,
MANCHESTER FOR GBP34.1 MILLION
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that it has exchanged contracts on the Argos Regional
Distribution Centre at Heywood Distribution Park, Heywood,
Manchester for a purchase price of GBP34.1 million (net of
acquisition costs), reflecting a net initial yield of 5.3% on the
asset purchase. The purchase has been funded out of equity
proceeds, with senior debt finance expected to be introduced in the
near term. Completion is expected to take place on 29 April
2015.
Developed in 1998 for Argos, this high specification facility
incorporates design features such as cross docking, has an eaves
height of 15.2 metres and comprises a rentalised area of
approximately 381,106 sq ft., with a low site cover of 46%.
The Heywood Distribution Park is strategically located on the
A58 trunk road linking Leeds and Manchester. It is approximately
seven miles north of Manchester city centre and junction 18 of the
M62 motorway is two miles to the south, providing good access to
the North-West of England and the wider trans-Pennine motorway
network.
The Argos Distribution Centre is being acquired with an
unexpired lease term of approximately 13 years, subject to five
yearly open market rent reviews. The next review is due in
2018.
Buchanan Bond represented the Company and Rapleys represented
the vendor.
Colin Godfrey, Partner of Tritax, commented:
"We are delighted to acquire the Argos Regional Distribution
Centre in Manchester. The property is strategically positioned to
service large parts of the North-West region, supporting Argos'
e-retail and click and collect growth in the region. The North West
is a key logistics location and, in 2014, the region saw the
highest take up of logistics space with major occupiers such as
Travis Perkins, the Hut, Nice Pak, B&M and DHL, helping to
support the more attractive rent levels of comparable assets in the
surrounding area."
For further information, please contact:
Tritax Group via Newgate (below)
Colin Godfrey (Partner,
Fund Manager)
Newgate (PR Adviser) Tel: 020 7680 6550
James Benjamin Email: tritax@newgatecomms.com
Andre Hamlyn
Lois Engstrand
Jefferies International Tel: 020 7029 8000
Limited
Gary Gould
Stuart Klein
Alex Collins
Akur Limited Tel: 020 7493 3631
Anthony Richardson
Tom Frost
Siobhan Sergeant
NOTES:
Tritax Big Box REIT plc is a real estate investment trust to
which Part 12 of the UK Corporation Tax Act 2010 applies ("REIT").
The Company invests in and asset manages a portfolio of
well-located, modern "Big Box" assets, typically targeting
buildings greater than 500,000 sq. ft., let to institutional-grade
tenants on long-term leases (typically between 12 and 25 years in
length) with upward-only rent reviews (providing the potential for
inflation linked earnings growth), and with geographic and tenant
diversification throughout the UK. The Company seeks to exploit the
significant opportunity in this sub-sector of the UK logistics
market owing to strong tenant demand in high growth areas of the
economy and limited stock supply. The Company is the first listed
vehicle to give pure exposure to the "Big Box" asset class in the
UK.
Further information on Tritax Big Box REIT is available at
www.tritaxbigbox.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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