Replacement: Acquisition of Distribution Centre

RNS Number : 5645Q

Tritax Big Box REIT plc

01 September 2014

 



1 September 2014

The following amendments have been made to the Acquisition of the Wolseley Regional Distribution Centre announcement released on 29 August at 7:00am under RNS No 2964Q.

It is clarified that Tritax Big Box has purchased the freehold investment only, not Wolseley UK's DC operation. The location of the distribution centre has been clarified from Ripon to Melmerby, near Ripon. In addition, the description of Wolseley UK's use of the property as well as the details of the rent have been removed. The number of staff in Wolseley UK's DC has been amended from 3,000, which was incorrect, to 220.

All other details remain unchanged.

The full amended text is shown below.

TRITAX BIG BOX REIT PLC

(the "Company")

ACQUISITION OF THE DISTRIBUTION CENTRE IN MELMERBY, RIPON, NORTH YORKSHIRE, LEASED TO WOLSELEY UK, FOR £12.24 MILLION

The Board of Tritax Big Box REIT plc (LSE: BBOX) is pleased to announce that it has acquired the freehold investment leased to Wolseley UK in Melmerby, approximately 4 miles from Ripon Town Centre, for  a purchase price of £12.24 million (net of acquisition costs), reflecting a net initial yield of 6.73% on the corporate acquisition, assuming 1.8% costs.

The purchase has been funded out of equity proceeds, with senior debt finance expected to be introduced in the near term.

Melmerby is one of  five DCs in the UK for Wolseley UK Ltd ("Wolseley UK").

Wolseley UK employs 220 people at Melmerby DC, which is conveniently positioned close to Junction 50 of the A1. It is a key component of the Wolseley UK supply chain.

Constructed in 2001, the property is of a high specification and provides a key RDC with ancillary offices and extensive parking over approximately 10.9 acres, with a rentalised area totalling 221,747 sq ft, thereby providing a low site cover of approximately 46%. The warehouse has an eaves height of 12m.

The distribution warehouse is being acquired with an unexpired lease term of approximately 12.5 years, which is subject to five yearly open market rent reviews. The next rent review due in September 2016, which is expected to be reversionary.

SG Commercial and WHY represented the Company. Cushman & Wakefield represented the vendor.

Colin Godfrey, Partner of Tritax, commented:

"We are delighted with our acquisition of the site and building leased by Wolseley UK in Melmerby, Ripon,  which serves the North of England, Scotland and Northern Ireland with immediate motorway connectivity. It also provides tenant diversification to our current portfolio."

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 Alex Collins	Tel: [phone]
Akur Limited Anthony Richardson Tom Frost Siobhan Sergeant	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 at least 12 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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