Tritax Big Box REIT plc Acquisition of Brake Bros Distribution Centre (8019J)
April 10 2015 - 1:00AM
UK Regulatory
TIDMBBOX TIDMLMP
RNS Number : 8019J
Tritax Big Box REIT plc
10 April 2015
10 April 2015
TRITAX BIG BOX REIT PLC
(the "Company")
ACQUISITION OF BRAKE BROS LTD DISTRIBUTION CENTRE, FLEX MEADOW,
HARLOW FOR GBP37.2 MILLION
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that it has exchanged contracts on a regional
distribution centre at Flex Meadow, Harlow, let to Brake Bros Ltd
("Brake Bros"), for a purchase price of GBP37.2 million (net of
acquisition costs), which reflects a net initial yield of 5.0%. The
purchase has been funded out of equity proceeds, with senior debt
finance expected to be introduced in the near term. Completion is
expected to take place in June 2015.
The asset is strategically positioned in a core South East
location, close to the M11, the M25 and Central London, providing
distribution reach across the South East. It is currently
undergoing a comprehensive refurbishment programme (fully financed
by the tenant) and comprises a rentalised area of approximately
268,000 sq. ft., a low site cover of 37%, and features cross dock
loading and a temperature controlled environment.
It is being acquired from LondonMetric Property Plc with an
unexpired lease term of approximately 24.5 years, subject to five
yearly upward only rent reviews indexed to RPI, and capped at 5%
p.a. compound.
Colin Godfrey, Partner of Tritax, commented:
"We are pleased to be doing business with LondonMetric in the
acquisition of this regional logistics warehouse at Harlow. The
location, being in close proximity to the M25, is well positioned
for distribution to the Greater London market and enhances our
portfolio in the South East. The investment provides good quality
long term income which will potentially benefit from attractive
rent reviews. Brake Bros also provides further tenant
diversification for the Company's portfolio."
Dowley Turner Real Estate LLP represented the Company.
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 Limited Tel: 020 7029 8000
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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