Tritax Big Box REIT plc Acquisition (8186D)
October 12 2018 - 2:00AM
UK Regulatory
TIDMBBOX
RNS Number : 8186D
Tritax Big Box REIT plc
12 October 2018
12 October 2018
TRITAX BIG BOX REIT PLC
(the "Company")
FORWARD FUNDED INVESTMENT IN A NEW PRE-LET LOGISTICS FACILITY AT
MIDLANDS LOGISTICS PARK, CORBY, FOR GBP89.3 MILLION
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce the Company has exchanged contracts, conditional on
receiving full planning consent, to provide forward funding for the
development of a new National Distribution Centre at Midlands
Logistics Park ("MLP"), Corby. The property is pre-let to BSH Home
Appliances Limited ("BSH"), part of the Bosch Group. The Bosch
Group is the largest manufacturer of home appliances in Europe and
one of the leading companies in the sector worldwide with high
quality brands that include Bosch, Gaggenau, Neff and Siemens. The
development represents an investment of GBP89.3 million, reflecting
a net initial yield of 5.2% (net of acquisition costs to the
Company).
The property will comprise a cross-docked facility with
360-degree circulation, a minimum eaves height of 15 metres,
together with extensive parking and a site cover of approximately
50%. The new prime facility will be purpose-built to a high
specification with a gross internal area of c. 945,375 sq ft; it
will become BSH's largest UK distribution centre.
The site, situated adjacent to the pre-let Eddie Stobart Limited
property owned by the Company, forms part of MLP, a new logistics
park to the south of Corby. The property benefits from direct
access onto the A43 dual carriageway, which has recently been
upgraded, thereby providing improved access to the M1 southbound,
the M6 and A1(M) via the A14 dual carriageway. MLP is capable of
potentially accommodating approximately 5 million sq ft. of
logistics space and benefits from a 500-metre rail siding and yard
for a potential future connection onto the rail freight network.
This potential bi-modal connection for MLP would provide enhanced
connectivity for the site to the UK's ports and cities. Corby has
attracted a number of major occupiers including Eddie Stobart,
Wincanton, Matalan and Morrisons.
Upon practical completion of the construction, targeted for
Autumn 2019, the property will be let to BSH on a new 10-year
lease, subject to five yearly upward only rent reviews indexed to
the Retail Price Index, subject to a cap and collar. From
completion of the land purchase and during the construction phase,
the Company will receive an income return equivalent to the
rent.
Colin Godfrey, Partner of Tritax, commented:
"We are very pleased to be investing in this new distribution
centre for a new customer, BSH, whose home appliance products
include the Bosch, Gaggenau, Neff and Siemens brands. This
transaction also provides the Company with further exposure to an
emerging well-connected East Midlands logistics park south of
Corby. This off-market investment adds to our portfolio's core
foundation income and offers good potential 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
Anna Geffert
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. 67% 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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