Tritax Big Box REIT has announced that it has acquired Argos’ National Distribution Centre at Barton Business Park, Burton-upon-Trent, Staffordshire for a purchase price of £74.65m (net of acquisition costs), reflecting a net initial yield of 5.55% on the corporate acquisition. The purchase has been funded from equity proceeds, with senior debt finance expected to be introduced in the near term.
The distribution centre incorporates modern design features including an eaves height of between 12 and 30 metres, ancillary office accommodation, extensive loading and has benefited from significant capital investment by the tenant including substantial internal automation systems. The facility comprises 653,670 sq ft, arranged over c. 26 acres, providing a site cover of approximately 47%.
The National Distribution Centre is well positioned in Staffordshire in the West Midlands, a core central UK location, with excellent motorway connectivity, strategically located adjacent to the A38 dual carriageway providing direct access to the M6 Toll, M42 (Junctions 9 to 11) and via the A50 (Junction 24) and A511 (junction 22) to the M1 motorway, and with close proximity to rail and air connections. The West Midlands is an established logistics location, which has attracted a significant number of major occupiers, including Amazon, B&Q, Boots, Pirelli and Tesco.
The property is let to Argos Limited with an unexpired lease term of approximately 12 years and benefits from fixed annual rental increases of 3%.
BBOX : Tritax acquires Argos distribution centre