Tritax Big Box REIT has announced that it has completed the purchase of Matalan Retail’s Northern Distribution Centre at Knowsley Business Park, Liverpool, for £42.38m (net of acquisition costs). This reflects a net initial yield of 6.27% on the acquisition, which is being funded out of equity proceeds, with senior debt finance expected to be introduced in the near term.
The company says that the distribution centre was constructed in 2006 and extended in 2014 to satisfy Matalan’s expansion requirements. The building is modern and highly specified and it benefits from an eaves height of 15 metres and comprises a gross internal floor area of 578,127 sq ft with a site cover of c.50%. The distribution centre is located adjacent to a newly constructed 115,000 sq ft office building, occupied by Matalan, and together they form Matalan’s headquarters facility.
Knowsley Business Park is one of the largest industrial parks in Europe at 1,200 acres. It is currently undergoing infrastructure improvement works including a new access road and already benefits from a rail head. The investment is being acquired with an unexpired lease term of approximately 21 years, subject to five yearly upward only rent reviews to open market rental value. The next review is due in October 2021.
Tritax Big Box REIT buys Matalan’s Northern Distribution Centre : BBOX