Tritax invests in New Look distribution centre

Tritax Big Box REIT is spending £30m to buy one of New Look Retailers Ltd’s two adjoining national and European distribution centres in Newcastle-under-Lyme. the purchase price works out at a net initial yield of 5.9%.

Constructed in 2007 and extended in 2011 to satisfy New Look’s expansion requirements, the property comprises a gross internal area of 396,937 sq ft., with a site cover of 47%. The tenant has invested significant capital into the property, creating one of the most advanced automated clothing distribution facilities in the UK. Modern and highly specified, the distribution centre has an automated conveyor belt system that links with the adjacent property which is also occupied by New Look, and together this is critical to fully integrating the tenant’s supply chain. The building also incorporates multiple mezzanine floors and benefits from an eaves height of between 12 and 15 metres.

The property is well located in the North West, situated off the A34 dual carriageway linking to J15 and J16 of the M6, close to the main airports in both Manchester and Birmingham and to the Port of Liverpool. The immediate location has recently seen some of the highest levels of activity from major occupiers, which underpins the longevity of the area as a major UK distribution location.

The property is being acquired with an unexpired lease term of approximately 10 years, which is subject to five yearly upward only rent reviews. The next rent review is due in April 2017.

BBOX : Tritax invests in New Look distribution centre