Tritax Big Box REIT has announced the acquisition of two more distribution centres – one at Dove Valley Park, Derby and the other at Trafford Park in Manchester for a combined price of £55.1m, equivalent to a blended net initial yield of 6.53%, assuming 5.8% purchase costs. Completion of both purchases is expected to take place by 12 December 2014.
Dove Valley Park is leased to Kuehne & Nagel Limited, a leading global provider of supply chain solutions, and guaranteed by Hays PLC, a leading global recruitment company. The investment is being acquired with an unexpired lease term of approximately 13.5 years, which is subject to five yearly upward only open market rent reviews. Dove Valley Park is a major 200 acre industrial/distribution estate situated in an established distribution location in the North Midlands, close to East Midlands airport and Birmingham Rail Freights, with direct access onto the A50 dual carriageway linking the M6 and M1. Originally constructed in 1997, the property was extended in 1999 to 343,248 sq. ft. It has an eaves height of 12 metres and a low site cover of 43%.
The distribution centre at Trafford Park is leased to L’Oreal (UK) Limited, one of the world’s leading beauty companies, and is being acquired with an unexpired lease term of approximately 5 years. Trafford Park remains one of the largest and most successful business parks in Europe. Trafford Park benefits from a rail freight terminal, which is the largest in the North West, running straight through to mainland Europe. It has direct access to the M60 and the Manchester Ship canal. The property was developed in 2004 and extended in 2013 with a total floor area of 315,118 sq. ft. and a low site cover of 45%. The building has an eaves height of 10.2 metres.