Tritax Big Box REIT plc ACQUISITION OF NEW LOOK DISTRIBUTION CENTRE (9744L)
May 01 2015 - 2:01AM
UK Regulatory
TIDMBBOX
RNS Number : 9744L
Tritax Big Box REIT plc
01 May 2015
1 May 2015
TRITAX BIG BOX REIT PLC
(the "Company")
ACQUISITION OF NEW LOOK RETAILERS LTD NATIONAL & EUROPEAN
DISTRIBUTION CENTRE AT LYMEDALE BUSINESS PARK, NEWCASTLE-UNDER-LYME
FOR GBP30.05 MILLION
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that it has exchanged contracts on one of the two
adjoining New Look Retailers Ltd ("New Look") National and European
Distribution Centres at Lymedale Business Park,
Newcastle-under-Lyme for a purchase price of GBP30.05 million (net
of acquisition costs), reflecting a net initial yield of 5.9% on
the corporate acquisition. The purchase will be funded from equity
proceeds, with senior debt finance expected to be introduced in the
near term. Completion is expected to take place by 6 May 2015.
Constructed in 2007 and extended in 2011 to satisfy New Look's
expansion requirements, the property comprises a gross internal
area of 396,937 sq ft., with a site cover of 47%. The tenant has
invested significant capital into the property, creating one of the
most advanced automated clothing distribution facilities in the UK.
Modern and highly specified, the distribution centre has an
automated conveyor belt system that links with the adjacent
property which is also occupied by New Look, and together this is
critical to fully integrating the tenant's supply chain. The
building also incorporates multiple mezzanine floors and benefits
from an eaves height of between 12 and 15 metres.
The property is well located in the North West, situated off the
A34 dual carriageway linking to J15 and J16 of the M6, close to the
main airports in both Manchester and Birmingham and to the Port of
Liverpool. The immediate location has recently seen some of the
highest levels of activity from major occupiers, which underpins
the longevity of the area as a major UK distribution location.
The property is being acquired with an unexpired lease term of
approximately 10 years, which is subject to five yearly upward only
rent reviews. The next rent review is due in April 2017.
Bilfinger GVA represented the Company and Deloitte Real Estate
represented the vendor, Deutsche Asset and Wealth Management on
behalf of a fund for institutional investors.
Colin Godfrey, Partner of Tritax, commented:
"We are pleased to have acquired one of New Look's two adjoining
National and European Distribution Centres. The property has
benefited from significant capital expenditure by the tenant and a
c.100,000 sq ft. extension in 2011, demonstrating New Look's
commitment to the location. This property is strategically
positioned with a critical mass of high quality occupiers in the
surrounding area where there are no high quality Big Boxes
available to let, providing a favourable dynamic for rental
growth."
For further information, please contact:
Tritax Group via Newgate (below)
Colin Godfrey (Partner,
Fund Manager)
Newgate (PR Adviser) Tel: 020 7680 6550
James Benjamin Email: tritax@newgatecomms.com
Andre Hamlyn
Lois Engstrand
Jefferies International Tel: 020 7029 8000
Limited
Gary Gould
Stuart Klein
Alex Collins
Akur Limited Tel: 020 7493 3631
Anthony Richardson
Tom Frost
Siobhan Sergeant
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 and asset manages a portfolio of
well-located, modern "Big Box" assets, typically targeting
buildings 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 (providing the potential for
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.tritaxbigbox.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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