Tritax Big Box REIT plc Completes Contracts on Forward Funded Development (3609L)
24 December 2018 - 6:00PM
UK Regulatory
TIDMBBOX
RNS Number : 3609L
Tritax Big Box REIT plc
24 December 2018
24 December 2018
TRITAX BIG BOX REIT PLC
(the "Company")
FORWARD FUNDED DEVELOPMENT OF A NEW STATE OF THE ART LOGISTICS
FACILITY NEAR DURHAM PRE-LET TO A WORLD LEADING RETAILER
The Board of Tritax Big Box REIT plc (ticker: BBOX) announces
that the Company has completed contracts for the forward funded
development of a new logistics fulfilment centre at Integra 61,
near Durham, pre-let to a financially robust world leading
retailer. The price represents a maximum commitment of GBP147.3
million, reflecting a net initial yield of 5.25% (net of standard
acquisition costs).
The development will comprise a new prime, state-of-the art,
purpose-built facility, with a gross internal floor area of
c.1,992,061 sq. ft. inclusive of three structural mezzanine floors
and a low site cover of c.32%. This high specification facility
will be cross-docked with an eaves height of over 20 metres. The
property will also benefit from significant capital investment by
the occupier, including high levels of automation.
The site has excellent road connectivity with direct access onto
Junction 61 of the A1(M) and is also easily accessible by air or
rail, being located close to Durham Tees Valley Airport, Newcastle
International Airport and Durham railway station. The location is
also near to the ports of Tees, Hartlepool, Sunderland and Tyne.
The area benefits from an appropriately skilled and flexible labour
supply within close proximity, which underpins the appeal of the
area as an increasingly important UK distribution location.
Upon practical completion of the construction, targeted for
summer 2020, the occupier will take up a new 20-year lease, subject
to five yearly upward only rent reviews indexed to the Consumer
Prices Index (collared at 1% pa and capped at 3% pa). During the
construction phase, the Company will receive an income return
equivalent to the annual rent from the developer.
This investment will be delivered in collaboration with the
occupier and the Citrus Group, who will also be developing the
remainder of the 200 acre Integra 61 project.
DTRE represented the Company, CBRE represented the occupier and
Avison Young represented the Citrus Group.
Colin Godfrey, Partner of Tritax, commented:
"We worked very closely with our occupier customer to deliver
this state-of-the-art, pre-let development, which provides the
Company with further exposure to a market leading occupier.
Strategically located in an increasingly important logistics
location with a strong labour supply, this asset, once operational,
will be the largest single let logistics facility outside the South
East, as well as one of the most technologically advanced
fulfilment centres in the UK, whilst providing further exposure to
a high calibre tenant on a long lease."
For further information, please contact:
Tritax Group via Newgate below
Colin Godfrey (Partner, Fund Manager)
Newgate (Communications Adviser) Tel: 07747 113 930
James Benjamin Email: tritax@newgatecomms.com
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, 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
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