Tritax is spending £47.1m to buy the Tesco Regional Distribution Centre at Capitol Park, Goole. The price reflects a net initial yield of 5.67%. They are paying for the deal using their own resources but expect senior debt finance to be introduced in the near term. Completion is expected to take place by 5 June 2015.
Developed in 2007 for Tesco, the site is one of its principal Regional Distribution Centres and a main hub for distributing general merchandise, ambient food and beverages. The high specification facility incorporates modern design features such as cross docking, a low site density of 31%, eaves height of 14 metres and a gross internal floor area of approximately 702,000 sq ft. The low site density would potentially allow for an extension of up to approximately 150,000 sq ft. of additional space.
Capitol Park is located close to the town centre of Goole, which provides a multi-modal location with excellent road, rail and port connectivity. Junction 36 of the M62 is within two miles of the property, providing easy access to the North-East region via the M1, M18, M180 and A1(M). The asset is in close proximity to the Port of Goole’s dedicated rail freight terminal, but also has the future potential to be directly connected to the national rail network.
The asset is being acquired with an unexpired lease term of approximately 17.5 years and is subject to five yearly upward only open market rent reviews. The next rent review is due in approximately 2.5 years.
BBOX : Tritax acquires Tesco regional distribution centre