1 September 2014
The Board of Tritax Big Box REIT plc is pleased to announce that it has acquired the freehold investment leased to Wolseley UK in Melmerby, approximately 4 miles from Ripon Town Centre, for a purchase price of £12.24 million (net of acquisition costs), reflecting a net initial yield of 6.73% on the corporate acquisition, assuming 1.8% costs.
The purchase has been funded out of equity proceeds, with senior debt finance expected to be introduced in the near term.
Melmerby is one of five DCs in the UK for Wolseley UK Ltd (“Wolseley UK”).
Wolseley UK employs 220 people at Melmerby DC, which is conveniently positioned close to
Junction 50 of the A1. It is a key component of the Wolseley UK supply chain.
Constructed in 2001, the property is of a high specification and provides a key RDC with ancillary offices and extensive parking over approximately 10.9 acres, with a rentalised area totalling 221,747 sq ft, thereby providing a low site cover of approximately 46%. The warehouse has an eaves height of 12m.
The distribution warehouse is being acquired with an unexpired lease term of approximately 12.5 years, which is subject to five yearly open market rent reviews. The next rent review due in September 2016, which is expected to be reversionary.
SG Commercial and WHY represented the Company. Cushman & Wakefield represented the vendor.
For further information, please contact:
Newgate Communications (Financial PR)
Tel: 020 7680 6550
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 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 first listed vehicle to give pure exposure to the “Big Box” asset class in the UK.