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
The Board of Directors of Tritax Big Box REIT plc (ticker: BBOX) announces that outline planning consent has been obtained for up to 2.31 million sq ft of high-quality logistics space at Symmetry Park, Kettering. This represents the second new development from the db Symmetry (“DBS”) strategic land portfolio acquired by the Company in February this year.
This development site extends to a total of 136 acres and is one of the few sites in the East Midlands that can accommodate a single logistics asset in excess of one million sq ft. The site has excellent road connectivity, located directly alongside the A14 “Trans-European” freight route. It will also deliver the first phase of the Isham bypass, which will see the joining and dualling of the A509 from Junction 9 of the A14 to the site entrance, helping the area to become an increasingly important UK distribution location.
The area benefits from an appropriately skilled and flexible labour supply within close proximity and this new logistics park will be a major contributor towards Kettering’s planned economic growth with the potential to create up to 2,800 jobs.
The Company currently holds this land under option and will now begin committing the initial capital, to be drawn down in phases, in order to ready the site for promotion on a pre-let development basis.
Once fully developed, the site has the potential to deliver a return on acquisition cost within the Company’s target range of 7% to 8%.
Colin Godfrey, Partner of Tritax, commented:
“We are pleased to have secured outline planning consent for this significant, well-located logistics development scheme at Symmetry Park, Kettering. This represents the second planning success from the db Symmetry portfolio acquired by the Company in February 2019, following on from the 660,000 st ft detailed planning consent secured on behalf of The Co-op Food Group at Biggleswade.
We have already commenced work on the planning application for the associated infrastructure and first phase of development and we look forward to continuing to engage with the local community as our proposals progress.
This new logistics park has the potential to provide an attractive yield on cost within our target range and, once fully developed, will bring significant employment opportunities and strengthen further the area’s economic growth.”
FOR FURTHER INFORMATION, PLEASE CONTACT:
Colin Godfrey (Partner, Fund Manager) via Maitland below
Maitland (Communications Adviser)
James Benjamin Tel: 020 7379 5151
Jefferies International Limited
Tel: 020 7029 8000
Tel: 020 7493 3631
The Company’s LEI is: 213800L6X88MIYPVR714
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 developments predominantly delivered through a pre-let forward funded basis, the Company focuses on large, well-located, modern “Big Box” logistics assets, 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