Tritax Big Box REIT plc Acquisition of Brake Bros Ltd Distribution Centre (1144T)
March 24 2016 - 3:00AM
UK Regulatory
TIDMBBOX
RNS Number : 1144T
Tritax Big Box REIT plc
24 March 2016
24 March 2016
TRITAX BIG BOX REIT PLC
(the "Company")
ACQUISITION OF BRAKE BROS LTD DISTRIBUTION CENTRE AT PORTBURY
WAY, PORTBURY, BRISTOL FOR GBP25.2 MILLION
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that it has acquired the distribution centre at
Portbury Way, Portbury, Bristol, let to Brake Bros Ltd ("Brake
Bros"), the leading food wholesalers in the UK, for a purchase
price of GBP25.2 million (net of acquisition costs), reflecting a
net initial yield of 5.15% to the Company. The purchase has been
funded out of equity proceeds, with senior debt finance expected to
be introduced in the near term.
The property comprises a purpose-built cold store facility with
a multi-temperature control system and incorporates modern design
features including cross docking with an eaves height of 11 metres.
The distribution centre will also benefit from significant capital
investment by the tenant to meet its growing distribution
requirements in the South West. The facility comprises a gross
internal floor area of 250,763 sq ft and benefits from a low site
cover of 32%.
The property is well positioned in a core South West location
with excellent motorway connectivity, at junction 19 of the M5,
seven miles from the M4. The Bristol area is the key logistics
location in the South West region, which has attracted a
significant number of major occupiers, including Asda, GKN, CHEP,
Next, Lidl, Royal Mail and Tesco, underpinning the longevity of the
area as a major UK distribution location.
The property is being acquired with a new unexpired lease term
of approximately 30 years, which is subject to five yearly upward
only rent reviews indexed to the Retail Price Index and capped at
5% p.a. compound. The next review is due in February 2021.
Colliers represented the vendor.
Colin Godfrey, Partner of Tritax, commented:
"The Brake Bros Distribution Centre in Portbury, Bristol will
provide long term income from an established covenant and further
geographic diversification of our portfolio. The property will
benefit from significant capital expenditure by the tenant,
underlining Brake Bros' commitment to the asset. The 30 year lease
commitment increases the Company's portfolio weighted unexpired
lease term to 16.7 years."
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
Alex Shilov
Lydia Thompson
Jefferies International Limited Tel: 020 7029 8000
Gary Gould
Stuart Klein
David Watkins
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 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 only 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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