BBOX : Tritax Big Box REIT acquires Wolseley’s distribution centre in Ripon for £12.2m
Tritax Big Box REIT has acquired Wolseley’s Regional Distribution Centre at Ripon, North Yorkshire for £12.24m (net of acquisition costs). The high specification property was constructed in 2001 and has ancillary offices and substantial parking over approximately 10.9 acres. The rentalised area is approximately 222k square feet and so has a low site cover of approximately 46%. The unexpired lease term is approximately 12.5 years and is subject to five yearly open market rent reviews. The purchase has been funded from equity proceeds, although senior debt finance expected to be introduced in the near term. The current passing rent is £838,500 per annum and, assuming costs of 1.8% of the acquisition price, the purchase represents a net initial yield of 6.73%.
Wolseley’s Regional distribution centre in Ripon serves the North of England, Scotland and Northern Ireland. Ripon is also home to Wolseley’s product returns distribution centre . Combined Wolseley employs c 3,000 people in the location.
Tritax Big Box REIT is a UK incorporated Real Estate Investment Trust focused on providing income and capital returns through investment in very large logistics warehouse assets (Big Box logistics) in the UK. It’s portfolio has a weighted average unexpired lease term of over 16 years and all tenants are part of a FTSE 100 group.