Tritax Big Box REIT has announced that it has acquired a National Distribution Centre at Trax Park, Doncaster, for £20.9 million (excluding purchaser’s costs), reflecting a net initial yield of 5.61% on the asset acquisition. The purchase is being funded from equity proceeds. The company says that the proeprty is let to Unilever, one of the world’s leading suppliers of Food, Home and Personal Care products. The property has been acquired with a new 15-year lease in place, subject to five yearly upward only rent reviews indexed to the Retail Price Index with a collar and cap in place.
The property was purpose-built in 2002 for Unilever. The company says that it is a high specification facility with a gross internal area of 262,885 sq ft and a site density of c.53%. It has an eaves height of between c.11 and 26 metres, extensive parking, is highly automated and has benefited from significant capital investment.
Located in Trax Park, the property is situated in what the company describes as a core UK distribution location with excellent motorway, rail and port connections. It is close to the M18, A1(M) and M1 and benefits from good access to the ports of Hull and Grimsby. The property is adjacent to Doncaster Rail Freight Terminal. The site is a well-established Regional and National Distribution Centre location with a number of major occupiers located close by including Amazon, Wincanton, XPO Logistics, B&Q, and Tesco in addition to the Company’s facilities let to Next and The Range.
Colin Godfrey, Partner of Tritax, says that, the investment further diversifies the portfolio by tenant and business sector, maintains the company’s WAULT at over 15 years and is earnings accretive.
Tritax Big Box REIT (http://tritaxbigbox.co.uk) claims to be the only listed vehicle to give pure exposure to the “Big Box” logistics asset class in the UK. It invests in, and manages both standing and pre-let forward funded development assets. The Company focuses on what it describes as well-located, modern “Big Box” logistics assets, typically greater than 500,000 sq. ft. (measured by floor area, 69% of the Company’s assets are in excess of 500,000 square feet), let to institutional-grade tenants on long-term leases (typically at least 12 years in length) with upward-only rent reviews and geographic and tenant diversification throughout the UK.
Tritax Big Box REIT acquires Unilever’s National Distribution Centre : BBOX