13 March 2014
The Board of Tritax Big Box REIT plc (the “Company”) is pleased to announce that it has exchanged contracts for the acquisition of Tesco’s Distribution Centre at Barlborough Links, Chesterfield, Derbyshire for a purchase price of £28.64 million (net of acquisition costs) reflecting a net initial yield of 6.6%. Completion is expected to take place on 17 March 2014. The purchase will initially be funded out of equity proceeds, with senior debt finance expected to be introduced in the near term.
The regional distribution centre was developed in 2005 and immediately leased to Tesco for a term of 15 years. The facility comprises approximately 500,000 sq. ft. with 15 metre eaves height, cross dock loading and extensive fit out. It is strategically located at Junction 30 of the M1 motorway for central UK distribution of general merchandise to Tesco national distribution hubs.
The distribution centre is being acquired with an unexpired lease term of approximately 6.2 years, which is subject to a 5 yearly open market rent review in May 2015.
Colin Godfrey, Partner of Tritax, commented:
“This is one of Tesco’s key distribution facilities for general merchandise in the UK. A dearth of large available units is driving strong growth prospects and this highly specified building with immediate access to the M1 is well placed to benefit.”
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.