Financing of M&S and Tesco Distribution Centres

RNS Number : 7701I

Tritax Big Box REIT plc

04 June 2014

 



4 June 2014

TRITAX BIG BOX REIT PLC

(the "Company")

FINANCING OF MARKS & SPENCER EAST MIDLANDS DISTRIBUTION CENTRE &

TESCO DISTRIBUTION CENTRE, SOUTHMEAD INDUSTRIAL ESTATE, DIDCOT

Further to the acquisitions of the Marks & Spencer East Midlands Distribution Centre at Castle Donington, Leicestershire announced on 13 December 2013 and the Tesco Distribution Centre at Southmead Industrial Estate, Didcot announced on 4 April 2014, the Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased to announce that the Company has signed agreements with Barclays Bank PLC to provide £49.3 million and £12.2 million respectively of senior debt financing secured individually on the assets. These reflect loan to value ratios of approximately 59% and 45% respectively. The debt financing for Marks & Spencer East Midlands Distribution Centre is for a term of five years, with an option to extend prior to the end of year two and three up to a maximum of seven years, with a margin of 200 bps above three month LIBOR. The debt financing for Tesco Didcot Distribution Centre is for a term of four years, with an option to extend prior to the end of year one up to a maximum of five years, with a margin of 185 bps above three month LIBOR.

As previously noted, the Group intends to operate a flexible gearing strategy with respect to individual assets.  Generally, the Group expects to utilise borrowings to a greater extent on individual assets with longer unexpired lease lengths, while assets with shorter lease terms are expected to be geared to a lesser extent.

Following drawdown of the loans, the Group's aggregate borrowings will be 45% of the Group's gross assets. As set out in the Company's investment policy, the Group's initial target level of aggregate borrowings is 45% of the Group's gross assets, once fully invested, with a medium term target of 40% of the Group's gross assets.

For further information, please contact:

Tritax Group Colin Godfrey (Partner, Fund Manager) via Newgate Communications Newgate Communications (Financial PR) James Benjamin Clotilde Gros Georgia Lewis Tel: [phone] Email: [e-mail] Jefferies International Limited Gary Gould Stuart Klein Tel: [phone] Akur Limited Anthony Richardson Tom Frost Tel: [phone]

NOTES:

Tritax Big Box REIT plc is a real estate investment trust to which Part 12 of the UK Corporation Tax Act 2010 applies ("REIT"). The Company invests in a portfolio of well-located, modern "Big Box" assets, typically greater than 500,000 sq. ft., let to institutional-grade tenants on long-term leases (typically between 12 and 25 years in length) with upward-only rent reviews (giving inflation linked earnings growth), and with geographic and tenant diversification throughout the UK. The Company seeks to exploit the significant opportunity in this sub-sector of the UK logistics market owing to strong tenant demand in high growth areas of the economy and limited stock supply. The Company is the first listed vehicle to give pure exposure to the "Big Box" asset class in the UK.

Further information on Tritax Big Box REIT is available at www.tritaxbigboxreitplc.co.uk 

 

END

 

 

MSCBIGDLUGGBGSX