BBOX : Tritax Big Box REIT acquires DHL Distribution Warehouse in Lancashire for £28.9m
Tritax Big Box REIT has announced it is to acquire a Distribution Warehouse in Skelmersdale, Lancashire, currently let to DHL Supply Chain Ltd, for £28.9m (net of purchase costs). The warehouse was originally constructed in 2003 and is a fully fitted distribution facility, complete with offices and substantial car parking, over approximately 29.5 acres. The rentalised area is currently 472k square feet, thereby representing a low site cover of 36%. The warehouse is being acquired from DHL with a new 10 year leaseback agreement. This is subject to five yearly open market rent reviews (the next is due in 2019), and the current passing rent is approximately £2.0m per annum. This is equivalent to a net initial yield of 6.5% on the purchase price, assuming 6.6% purchase cost. The transaction is expected to complete in August 2014.