Replacement of Acquisition Announcement

RNS Number : 2764Y
Tritax Big Box REIT plc
28 November 2014
 



This announcement replaces an earlier release issued 28th November 2014 at 7am RNS 2461Y. The amendment relates to the quote to confirm that this is the company's first acquisition in the North West. 

 

All other details remain unchanged.

 

 

28 November 2014

TRITAX BIG BOX REIT PLC

(the "Company")

REPLACEMENT - ACQUISITION OF DISTRIBUTION WAREHOUSE, MIDDLETON, MANCHESTER

FOR £22.45 MILLION

 

The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased to announce that it has exchanged contracts on the Tesco distribution warehouse in Touchet Hall Road, Middleton, Manchester for £22.45 million (net of acquisition costs), reflecting a net initial yield of 8.25%, assuming 5.8% standard costs of purchase. Completion is expected to take place on 2 December 2014. The purchase, which was off-market, has been funded out of equity proceeds.

 

The distribution warehouse is situated on Stakehill, an established 200 acre industrial estate providing 2.5 million sq ft of logistics space and employing 2,500 people, just to the east of Junction 20 of the M62. Manchester is approximately 8 miles to the east, and Liverpool 42 miles to the west.  The industrial estate is home to a critical mass of occupiers including Sainsbury, Aldi, Booker and several third party logistics operators such as Bibby, Yodel and NFT Distribution.

 

The facility provides a rentalised area totalling 301,479 sq ft with a very low site cover of 31%. The unit was constructed in 1988 and has an eaves height of approximately 12 metres. The property, which is currently unoccupied, is leased to Tesco Stores Limited, for an unexpired term of approximately 9.2 years, with two further rent reviews in December 2017 and 2022.

 

SG Commercial represented the Company and DTRE represented the vendor.

 

Colin Godfrey, Partner of Tritax, commented:

We are pleased to announce this acquisition in the North West, a region which has witnessed the highest levels of activity for industrial take up, accounting for over 25% of all industrial sector real estate transactions in the UK in 2014 so far. We see potential significant value add opportunities through asset management of this distribution warehouse."

 

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: 020 7680 6550

Email: tritax@newgatecomms.com



Jefferies International Limited

Gary Gould

Stuart Klein

Alex Collins

Tel: 020 7029 8000



Akur Limited

Anthony Richardson

Tom Frost

Siobhan Sergeant

Tel: 020 7493 3631


 

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 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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