Tritax Big Box REIT plc Forward funded investment (2580R)
08 December 2016 - 6:00PM
UK Regulatory
TIDMBBOX
RNS Number : 2580R
Tritax Big Box REIT plc
08 December 2016
8 December 2016
TRITAX BIG BOX REIT PLC
(the "Company")
FORWARD FUNDED INVESTMENT IN A NEW PRE-LET DISTRIBUTION FACILITY
AT PROLOGIS PARK, FRADLEY, STAFFORDSHIRE
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that it has completed the land purchase and exchanged
contracts to provide forward funding for the development of a new
distribution facility at Prologis Park Fradley, Staffordshire,
pre-let to Screwfix Direct Ltd ("Screwfix"), whose ultimate parent
is Kingfisher Plc. Screwfix is the UK's largest multi-channel
retailer of trade tools, accessories and hardware products. The
development represents an investment of GBP52.7 million, reflecting
a net initial yield of 5.5% (net of acquisition costs to the
Company).
The site is situated in a key Midlands logistics location,
adjacent to the A38 dual carriageway, providing excellent
connectivity to the M6 Toll, M42 and M1 motorways and with close
proximity to rail and air connections. The area has attracted a
significant number of major occupiers including Bidvest
Foodservice, DHL, Tesco, Wincanton and Yodel.
The new facility will be completed to a high specification,
comprising 562,000 sq ft., with an eaves height of 15 metres,
extensive parking, offices and a site cover of approximately 48%.
The development will be Screwfix's fourth UK distribution
centre.
Upon practical completion of the construction, targeted for
October 2017, the property will be leased to Screwfix on a new 10
year lease, subject to five yearly upward only open market rent
reviews. During the construction phase, the Company will receive an
income return equivalent to the agreed rent from the developer.
The development is being undertaken by Winvic Construction Ltd
and guaranteed by Prologis UK Ltd on behalf of Tango Real Estate
LLP, a joint venture vehicle between Prologis and Wittington
Investments (Developments) Ltd. The land purchase has been funded
by the Company from equity proceeds, with senior debt finance to be
introduced in the near term.
DTRE represented the Company and JLL represented the vendor.
Colin Godfrey, Partner of Tritax, commented:
"This investment which is accretive to our dividend is a good
addition to our portfolio, offering tenant and business sector
diversification with a strong covenant. The property is located
within the Golden Triangle for UK logistics, which is seeing
positive rental growth. This represents our eighth pre-let forward
funded development and brings our total portfolio to 35
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
Zoe Pocock
Alex Shilov
Lydia Thompson
Jefferies International Tel: 020 7029 8000
Limited
Gary Gould
Stuart Klein
Akur Limited Tel: 020 7493 3631
Anthony Richardson
Tom Frost
Siobhan Sergeant
NOTES:
Tritax Big Box REIT plc is the only listed vehicle to give pure
exposure to the "Big Box" logistics asset class in the UK and is
committed to delivering attractive and sustainable returns for
shareholders. Investing in and managing both standing and pre-let
forward funded development assets, the Company focuses on
well-located, modern "Big Box" logistics 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 and 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 and limited stock supply.
The Company is a real estate investment trust to which Part 12
of the UK Corporation Tax Act 2010 applies ("REIT"), is listed on
the premium segment of the Official List of the UK Financial
Conduct Authority and is a constituent of the FTSE 250, FTSE
EPRA/NAREIT and MSCI indices.
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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