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
£68.7 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
Colin Godfrey (Partner, Fund Manager)
via Newgate (below)
Newgate (PR Adviser)
James Benjamin
Anna Geffert
Tel: 020 7680 6550
Email: tritax@newgatecomms.com
Jefferies International Limited
Gary Gould
Stuart Klein
Tel: 020 7029 8000
Akur Limited
Anthony Richardson
Tom Frost
Siobhan Sergeant
Tel: 020 7493 3631
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
