Planning permission received for the development of a new regional distribution centre at Symmetry Park, Biggleswade, pre-let to the Co-op Food GroupRead more
20 August 2014
The Board of Tritax Big Box REIT plc is pleased to announce that it has exchanged contracts on the DHL Supply Chain Ltd (“DHL”) warehouse at Langley Mill, Nottingham for a purchase price of £17.53 million (net of acquisition costs), reflecting a net initial yield of 6.5% on the asset acquisition, assuming 6.6% purchase costs. Completion is expected to take place on 27 August 2014. The purchase has been funded out of equity proceeds, with senior debt finance expected to be introduced in the near term.
Langley Mill is well located approximately eight miles north west of Nottingham and is accessed from Junction 26 of the M1 motorway. The unit is centrally located within the UK to allow for optimum distribution coverage within the maximum HGV drive time.
Constructed in 2007, the property is a modern and high specification distribution facility with ancillary offices and extensive parking over approximately 13.24 acres, with a rentalised area totalling 255,680 sq ft, thereby providing a low site cover of approximately 45%. The warehouse has an eaves height of 12m.
The Langley Mill distribution warehouse is being acquired from DHL with a new 10 year leaseback agreement, which is subject to five yearly open market rent reviews, and a current passing rent of approximately £1.214 million per annum (£4.75 per sq ft). The next rent review is due in August 2019. DHL has committed to significant further capital expenditure to fit the unit out in order to fulfil a new national distribution contract.
SG Commercial represented the Company and CBRE 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.