Tritax Big Box REIT plc Pre-let development of Howden Joinery facility (1938Y)
07 September 2015 - 4:00PM
UK Regulatory
TIDMBBOX
RNS Number : 1938Y
Tritax Big Box REIT plc
07 September 2015
7 September 2015
TRITAX BIG BOX REIT PLC
(the "Company")
FORWARD FUNDED INVESTMENT IN A NEW BIG BOX DEVELOPMENT AT WARTH
PARK IN RAUNDS, NORTHAMPTONSHIRE
PRE-LET TO HOWDEN JOINERY GROUP PLC
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that it has exchanged conditional contracts to acquire
the land and provide forward funding for the development of a new
distribution warehouse facility, pre-let in its entirety to Howden
Joinery Group Plc ("Howdens"), the parent group of the UK's leading
supplier of kitchens and joinery. The investment price is GBP67.0
million, reflecting a net initial yield of 5.03% (net of land
acquisition costs).
The site is strategically located at Warth Park in Raunds,
Northamptonshire on the A45 corridor approximately three miles from
J13 of the A14, which provides access to the ports of Felixstowe
and Harwich and also directly links to the A1(M) dual carriageway
and the M1 motorway. The site is also close to Northampton and
Thrapston, which have a strong Big Box logistics presence and
demand, with existing major distribution occupiers including
Homebase, Morrisons and Primark.
The new distribution facility will comprise a gross internal
area of approximately 655,000 sq ft., across a site of
approximately 32.52 acres, reflecting a site cover of c.46%. The
building will include modern specifications with cross docking and
an eaves height of 15 metres.
Upon practical completion, the facility will be leased to
Howdens on a new 30 year lease, without break, subject to upward
only open market rent reviews every five years. During the
construction phase, the Company will receive a developer finance
rate of 5% on the funds expended by the Company during the
construction process.
The development is being undertaken by Roxhill, a specialist UK
industrial and distribution warehouse developer. Construction of
the main works is expected to commence in September 2015 with
practical completion of the construction targeted for June 2016.
The land purchase will be funded by the Company from equity
proceeds, with senior debt finance expected to be introduced in the
near term.
Colin Godfrey, Partner of Tritax, commented:
"We are excited to be investing in a new national distribution
centre for Howdens, which provides further tenant and geographic
diversification. The investment also increases the weighted average
unexpired lease term and is accretive to our running yield. We look
forward to working with Roxhill to deliver a best in class
warehouse facility for Howdens at this key logistics location,
which has already attracted many high profile occupiers."
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
Alex Shilov
Andre Hamlyn
Jefferies International Limited Tel: 020 7029 8000
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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