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11 December 2013
The Board of Tritax Big Box REIT plc is pleased to announce that it has acquired a Sainsbury’s distribution centre in Sherburn-in-Elmet, Leeds from a fund advised by Ekistics Property Advisors LLP for a purchase price of £48.75 million (net of acquisition costs), reflecting a net initial yield of 6.65% on the corporate acquisition (equivalent to 6.39% net initial yield assuming standard purchaser’s costs). The purchase has been funded out of equity proceeds, with senior debt finance expected to be introduced in the near term.
This regional distribution centre is one of Sainsbury’s main regional distribution hubs distributing groceries to supermarket and ‘local’ store formats. It is strategically located with excellent transportation connections via road (A1(M) motorway), rail and air for central UK distribution for both e-commerce and national stores.
It was constructed in 2000 and comprises over 585,000 sq. ft. of ground floor area with 13 metre eaves height, extending over four buildings with associated loading and parking. The distribution centre is being acquired with an unexpired lease term of approximately 13 years, which is subject to five yearly upward only open market rent reviews.
Colin Godfrey, Partner of Tritax, commented:
“This is one of Sainsbury’s core regional distribution facilities servicing in excess of 200 stores in the North East, with close access to the A1(M), M1 and M62 motorways and rail freight and Intercity rail services. Tritax Big Box REIT plc is delighted to have made this acquisition which is expected to provide an excellent income stream.”
Buchanan Bond represented the Company. Knight Frank LLP represented Ekistics.
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.
Further information on Tritax Big Box REIT is available at www.tritaxbigboxreitplc.co.uk