FINANCING OF SAINSBURY'S DISTRIBUTION CENTRE

RNS Number : 5830E

Tritax Big Box REIT plc

10 April 2014

 



10th April 2014

TRITAX BIG BOX REIT PLC

(the "Company")

FINANCING OF SAINSBURY'S DISTRIBUTION CENTRE, LEEDS 

Further to the acquisition of the Sainsbury's distribution centre in Sherburn-in-Elmet, Leeds announced on 11 December 2013, the Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased to announce that the Company has signed an agreement with Barclays Bank PLC to provide £23.5 million of senior debt financing to the asset. This reflects a loan to value of approximately 48%. The debt financing is for a term of four years, with an option to extend prior to the end of year two and three up to a maximum of six years, with a margin of 175 bps above LIBOR.

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, such as the Sainsbury's distribution centre, while assets with shorter lease terms are expected to be geared to a lesser extent.

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, 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 

 

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