Tritax Big Box REIT plc FORWARD FUNDED INVESTMENT (6527S)
December 23 2016 - 2:00AM
UK Regulatory
TIDMBBOX
RNS Number : 6527S
Tritax Big Box REIT plc
23 December 2016
23 December 2016
TRITAX BIG BOX REIT PLC
(the "Company")
FORWARD FUNDED INVESTMENT IN TWO NEW DISTRIBUTION FACILITIES AT
WARTH PARK, RAUNDS, NORTHAMPTONSHIRE
PRE-LET TO HOWDEN JOINERY GROUP PLC
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that it has exchanged contracts (conditional on
receiving planning consent) to provide forward funding for the
development of two new distribution warehouse facilities at Warth
Park, Raunds, pre-let in their entirety under two separate leases
to Howdens Joinery Group Plc ("Howdens"), the parent group of the
leading supplier of kitchens in the UK. The investment price is
GBP101.8 million, reflecting a net initial yield of 5.1% (net of
land acquisition costs). Upon practical completion of the
construction, targeted for August 2018, both properties will be
leased to Howdens on two new 30 year leases, subject to five yearly
upward only open market rent reviews.
Warth Park, at Raunds, Northamptonshire is strategically located
on the A45 corridor close to J13 of the A14, which provides access
to the ports of Felixstowe and Harwich and also directly links to
the A1(M) dual carriageway and the M1 motorway. The site is
currently host to two logistics facilities recently acquired by the
Company let to Whirlpool and Howdens; other notable nearby
distribution facility occupiers include Homebase, Morrisons and
Primark at Wellingborough, Northampton and Thrapston
respectively.
The two distribution facilities, which will stand adjacent to
one another and to the Company's existing Howdens facility, are
under separate freehold titles and will be completed to a high
specification with gross internal floor areas of 657,000 sq ft and
300,000 sq ft., respectively. Both buildings will have an eaves
height of 15 metres, extensive offices and a combined site cover of
approximately 53%.
The development will be undertaken by Roxhill which successfully
delivered the previous Howdens facility on time and on budget. The
land purchase will be funded by the Company from equity proceeds,
with senior debt finance to be introduced in the near term.
Colin Godfrey, Partner of Tritax, commented:
"We are pleased to be working with Roxhill again and investing
in the second phase of Howdens' new distribution centre, following
the successful completion of the first phase which the Company also
forward funded in September 2015. Once completed, these three
facilities will provide Howdens with a 'centre of excellence' for
its supply chain operations which is expected to deliver very
significant operational and efficiency benefits.
"This investment is in an established logistics location with a
strong covenant and extends the weighted average unexpired lease
term of the Company's portfolio to c.16 years. This represents our
ninth and tenth pre-let forward funded development and brings our
total portfolio to 37 assets."
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
Zoe Pocock
Lydia Thompson
Jefferies International Tel: 020 7029 8000
Limited
Gary Gould
Stuart Klein
Akur Limited Tel: 020 7493 3631
Anthony Richardson
Tom Frost
Siobhan Sergeant
NOTES:
Tritax Big Box REIT plc is the only listed vehicle to give pure
exposure to the "Big Box" logistics asset class in the UK and is
committed to delivering attractive and sustainable returns for
shareholders. Investing in and managing both standing and pre-let
forward funded development assets, the Company focuses on
well-located, modern "Big Box" logistics 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 and 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 and limited stock supply.
The Company is a real estate investment trust to which Part 12
of the UK Corporation Tax Act 2010 applies ("REIT"), is listed on
the premium segment of the Official List of the UK Financial
Conduct Authority and is a constituent of the FTSE 250, FTSE
EPRA/NAREIT and MSCI indices.
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
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