Tritax Big Box REIT plc Acquisition (2467C)
28 September 2018 - 4:01PM
UK Regulatory
TIDMBBOX
RNS Number : 2467C
Tritax Big Box REIT plc
28 September 2018
28 September2018
TRITAX BIG BOX REIT PLC
(the "Company")
FORWARD FUNDED DEVELOPMENT OF A NEW LOGISTICS FACILITY AT
HAYDOCK, ST HELENS, MERSEYSIDE FOR GBP67.9 MILLION PRE-LET TO WORLD
LEADING RETAILER
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that the Company has exchanged contracts, conditional
on full planning consent, for the forward funded development of a
new logistics sortation centre at Haydock, St Helens, Merseyside,
pre-let to a financially robust world leading retailer. The price
represents a maximum commitment of GBP68.7 million, reflecting a
net initial yield of 4.9% (net of acquisition costs to the
Company), rising to 5.4% at the first rent review in 2024(1) .
The development will comprise a facility with docking to three
sides, 360-degree circulation, an eaves height of 12 metres and
service yards on three sides with 67 metre depths which is wider
than the standard institutional specification to improve
operational efficiency and HGV circulation. The new prime facility
will be constructed to a high specification with a gross internal
floor area of c.361,062 sq ft and low site cover of 24% compared to
a standard logistics site cover of between 45/50%. The regular
configuration of the site could therefore accommodate a building in
total of c.700,000 sq ft at a more standard 45/50% site cover.
The site is located in an established logistics area and
adjoining the Haydock Industrial Estate, with excellent road
connectivity directly onto the A580 which provides an East-West
link between Manchester and Liverpool and J23 of the M6 motorway.
As such, the location benefits from close proximity to the
deep-water container port, Liverpool2, and to Manchester Airport.
Haydock has a catchment population of c.2.5 million people within a
30-minute drive, providing a large workforce to draw from, which
underpins the longevity of the area as an established UK
distribution location.
Upon practical completion of the construction ("PC"), the
property will be leased on a new 15-year lease, subject to five
yearly upward only rent reviews indexed to the Consumer Price Index
(collared at 1% pa and capped at 3% pa). The first rent review is
targeted for September 2024. From completion of the land purchase
and during the construction phase to the target date of PC, the
Company will receive an income return equivalent to the agreed rent
from the developer.
The development is being undertaken by Bericote, a highly
experienced developer of UK industrial logistics property which the
Company has an established track record of working with
previously.
DTRE represented the Company.
Colin Godfrey, Partner of Tritax, commented:
"We worked very closely with the Customer and Bericote to
deliver this off-market pre-let development, which provides the
Company with further exposure to a market leading occupier. Once
operational, the building will represent one of the most advanced
sortation buildings in the UK on a site with very low site cover,
whilst further diversifying the Company's portfolio by geography in
an established logistics hub with strong labour supply."
(1) Based on the average of independent forecasts published by
HM Treasury to 2022 and the Bank of England inflation target of 2%
pa thereafter.
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
Anna Geffert
Jefferies International Limited Tel: 020 7029 8000
Gary Gould
Stuart Klein
Akur Limited Tel: 020 7493 3631
Anthony Richardson
Tom Frost
Siobhan Sergeant
The Company's LEI is: 213800L6X88MIYPVR714
NOTES:
Tritax Big Box REIT plc is the only listed vehicle dedicated to
investing in very large logistics warehouse assets ("Big Boxes") in
the UK and is committed to delivering attractive and sustainable
returns for shareholders. Investing in and actively managing
existing built investments, land suitable for Big Box development
and pre-let forward funded developments, the Company focuses on
well-located, modern "Big Box" logistics assets, typically greater
than 500,000 sq. ft. (measured by floor area, c. 67% of the
Company's existing logistics facilities including forward funded
developments are in excess of 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 supply
of Big Boxes.
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
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END
ACQLRMRTMBJTBMP
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