Completion of a New 15-Year Lease to a World Leading Retailer on Chesterfield AssetRead more
28 December 2017
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased to announce that it has acquired a national distribution facility at Hickling Road in Cannock, Staffordshire, which is operated and let to Unilever UK Ltd (“Unilever”), one of the world’s leading suppliers of Food, Home and Personal Care products. The total consideration is £44.25 million (excluding purchaser’s costs).
The property is strategically situated in a core Midlands distribution location with excellent connectivity to the M6 motorway for access to Birmingham and Manchester Airports, the Port of Liverpool in the North West and the Port of Avonmouth in the South West. The area has attracted a significant number of logistics occupiers including APC Overnight, Bidvest, First Group and Hellerman Tyton. Purpose built in 2005 for Unilever and extended in 2012, this high specification facility has a gross internal area of 541,157 sq. ft., an eaves height of between c.10 and 28 metres, extensive parking, is highly automated and has benefited from significant capital investment.
The property has been acquired with a new 10 year lease, subject to a five yearly upward only rent review indexed to the Retail Price Index with a collar and cap in place.
Cushman & Wakefield represented Unilever.
Colin Godfrey, Partner of Tritax, commented:
“We are pleased to have acquired our second distribution centre let to the leading globally recognised consumer goods company; Unilever. This property plays a key role in Unilever’s supply chain and has benefited from significant capital investment with a high level of automation. This purchase adds to our portfolio’s core foundation income, strengthens our existing customer relationship with Unilever, provides geographic diversity and offers good potential for rental growth.”
For further information, please contact:
Tritax Big Box
Colin Godfrey (Partner, Fund Manager)
Tel: 020 7290 1616
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.65% of the Company’s existing logistics facilities including forward funded developments are in excess of 500,000 sq ft1), 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 Tritax Big Box REIT is available at www.tritaxbigbox.co.uk