BBOX : Tritax raises £110m and spends £22m
Tritax Big Box REIT has announced that it has raised £110m by placing 104.77m shares at 105p. It has also said that it has exchanged contracts on a Tesco retail distribution warehouse for which they are paying £22.45m, equivalent to a net initial yield of 8.25%.
The Tesco warehouse is located at Touchet Hall Road, Middleton, Manchester, on Stakehill, an established 200 acre industrial estate providing 2.5 million sq ft of logistics space and employing 2,500 people, just to the east of Junction 20 of the M62. Manchester is approximately 8 miles to the east, and Liverpool 42 miles to the west. The industrial estate is home to a critical mass of occupiers including Sainsbury, Aldi, Booker and several third party logistics operators such as Bibby, Yodel and NFT Distribution.
The Tesco facility provides a rentalised area totalling 301,479 sq ft with a very low site cover of 31%. The unit was constructed in 1988 and has an eaves height of approximately 12 metres. The property, which is currently unoccupied, is leased to Tesco Stores Limited, for an unexpired term of approximately 9.2 years, with two further rent reviews in December 2017 and 2022.