Tritax Big Box REIT plc Acquisition of Argos' National Distribution Centre (3410T)
29 March 2016 - 5:01PM
UK Regulatory
TIDMBBOX
RNS Number : 3410T
Tritax Big Box REIT plc
29 March 2016
29 March 2016
TRITAX BIG BOX REIT PLC
(the "Company")
ACQUISITION OF ARGOS' NATIONAL DISTRIBUTION CENTRE AT
BURTON-UPON-TRENT, STAFFORDSHIRE FOR GBP74.65 MILLION
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that it has acquired Argos' National Distribution
Centre at Barton Business Park, Burton-upon-Trent, Staffordshire
for a purchase price of GBP74.65 million (net of acquisition
costs), reflecting a net initial yield of 5.55% on the corporate
acquisition. The purchase has been funded from equity proceeds,
with senior debt finance expected to be introduced in the near
term.
The distribution centre incorporates modern design features
including an eaves height of between 12 and 30 metres, ancillary
office accommodation, extensive loading and has benefited from
significant capital investment by the tenant including substantial
internal automation systems. The facility comprises 653,670 sq ft,
arranged over c. 26 acres, providing a site cover of approximately
47%.
The National Distribution Centre is well positioned in
Staffordshire in the West Midlands, a core central UK location,
with excellent motorway connectivity, strategically located
adjacent to the A38 dual carriageway providing direct access to the
M6 Toll, M42 (Junctions 9 to 11) and via the A50 (Junction 24) and
A511 (junction 22) to the M1 motorway, and with close proximity to
rail and air connections. The West Midlands is an established
logistics location, which has attracted a significant number of
major occupiers, including Amazon, B&Q, Boots, Pirelli and
Tesco.
The property is let to Argos Limited with an unexpired lease
term of approximately 12 years and benefits from fixed annual
rental increases of 3%.
JLL represented the Company on the acquisition and David Baroukh
Associates LLP represented the vendor.
Colin Godfrey, Partner of Tritax, commented:
"We are pleased to have completed this acquisition, the second
investment following our equity fundraising which closed in
February. The highly automated facility is one of Argos' key
National Distribution Centres providing downstream supply of goods
to Regional Distribution Centres and onward to stores or e-commerce
customers. It provides further geographical diversification,
complements our existing Argos investment at Heywood, Manchester,
and allows us to build upon that existing relationship. Our
portfolio now comprises 27 Big Box logistics assets."
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
Lydia Thompson
Jefferies International Tel: 020 7029 8000
Limited
Gary Gould
Stuart Klein
David Watkins
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 greater than
500,000 sq. ft., let to institutional-grade tenants on long-term
leases (typically at least 12 years in length) with upward-only
rent reviews (giving 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 only 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
ACQEASDNALFKEEF
(END) Dow Jones Newswires
March 29, 2016 02:01 ET (06:01 GMT)
Tritax Big Box Reit (LSE:BBOX)
Historical Stock Chart
From May 2024 to Jun 2024
Tritax Big Box Reit (LSE:BBOX)
Historical Stock Chart
From Jun 2023 to Jun 2024