Tritax Big Box REIT plc Acquisition (0310T)
June 29 2018 - 3:09AM
UK Regulatory
TIDMBBOX
RNS Number : 0310T
Tritax Big Box REIT plc
29 June 2018
29 June 2018
TRITAX BIG BOX REIT PLC
(the "Company")
FORWARD FUNDED DEVELOPMENT OF A NEW LOGISTICS FACILITY AT LINK
66, DARLINGTON FOR GBP120.7 MILLION PRE-LET TO world leading
retailer
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that the Company has exchanged contracts for the
forward funded development of a new logistics fulfilment centre at
Link 66, Darlington, pre-let to a financially robust world leading
retailer. Completion is expected in early July 2018 when the land
will be acquired and the development will commence. The price
represents a maximum commitment of c.GBP120.7 million, reflecting a
net initial yield of 5.0% (net of acquisition costs to the
Company).
The development will comprise a cross-docked facility with
360-degree circulation, an eaves height of 18 metres and low site
cover of approximately 32%. The new prime facility will be
constructed to a high specification with a gross internal floor
area of c.1,508,367 sq ft. The ground floor will extend to
c.542,060 sq ft surmounted by two structural mezzanine floors. The
property will benefit from significant capital investment by the
occupier, including high levels of automation.
The site forms part of Link 66, an emerging logistics location
situated on the eastern edge of Darlington at the junction of the
A66 and A1150, with excellent motorway connectivity via junctions
57 and 58 of the A1(M). The planned Darlington northern bypass will
link the A1(M) at junction 59 to the A66 roundabout adjacent to the
subject site. The location also benefits from close proximity to
the cargo ports at Tees and Hartlepool, access by air via Durham
Tees Valley Airport and by rail from Darlington railway
station.
Upon practical completion of the construction, targeted for
summer 2019, the property will be leased on a new 20-year lease,
subject to five yearly upward only rent reviews indexed to the
Consumer Prices Index (collared at 1% pa and capped at 3% pa). The
first rent review is due in summer 2024. From completion of the
land purchase and during the construction phase, the Company will
receive an income return equivalent to the agreed rent from the
developer, thereby providing 21 years of projected income.
The development is being undertaken by db symmetry, a highly
experienced developer of UK industrial logistics property.
DTRE represented the Company and CBRE represented the vendor
Colin Godfrey, Partner of Tritax, commented:
"We worked very closely with both the occupier and db symmetry
in the delivery of this off-market pre-let development. Once
operational the facility will be one of the most technologically
advanced buildings of its kind in the UK. The investment
diversifies the Company's portfolio by geography and provides
further exposure to a high calibre tenant on a long lease."
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
Anna Geffert
Patrick Hanrahan
Jefferies International Limited Tel: 020 7029 8000
Gary Gould
Stuart Klein
Akur Limited Tel: 020 7493 3631
Anthony Richardson
Tom Frost
Siobhan Sergeant
The Company's LEI is: 213800L6X88MIYPVR714
NOTES:
Tritax Big Box REIT plc is the only listed vehicle dedicated to
investing in very large logistics warehouse assets ("Big Boxes") in
the UK and is committed to delivering attractive and sustainable
returns for shareholders. Investing in and actively managing
existing built investments, land suitable for Big Box development
and pre-let forward funded developments, the Company focuses on
well-located, modern "Big Box" logistics assets, typically greater
than 500,000 sq. ft. (measured by floor area, c. 65% of the
Company's existing logistics facilities including forward funded
developments are in excess of 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 supply
of Big Boxes.
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
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END
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