Tritax Big Box REIT plc Acquisition (0673Z)
May 24 2016 - 1:01AM
UK Regulatory
TIDMBBOX
RNS Number : 0673Z
Tritax Big Box REIT plc
24 May 2016
24 May 2016
TRITAX BIG BOX REIT PLC
(the "Company")
ACQUISITION OF A DSG RETAIL PLC NATIONAL DISTRIBUTION CENTRE AT
NEWARK, NOTTINGHAMSHIRE FOR GBP77.30 MILLION
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that it has exchanged contracts to acquire a National
Distribution Centre let to DSG Retail Ltd ("DSG"), part of the
Dixons Carphone plc group. The purchase price is GBP77.30 million
(excluding purchaser's costs), reflecting a net initial yield of
5.86% on the corporate acquisition. The purchase is being funded
from equity proceeds, with senior debt finance expected to be
introduced in the near term. Completion is expected to take place
later today.
The property is one of two National DSG Distribution Centres
located on Newlink Business Park in Newark, Nottinghamshire and
forms part of DSG's principal National Distribution hub for direct
store replenishment, home deliveries and returns. The National
Distribution Centre also accommodates DSG's main service repair
centre which has benefited from significant capital investment.
This facility was purpose built to a high specification for DSG in
2003 and includes an eaves height of 12.25 metres, extensive
parking and a substantial service yard. The facility has a gross
internal floor area of 725,798 sq ft and a low site cover of circa
37%. The property has an unexpired lease term of approximately 20
years and benefits from 3% per annum fixed rental increases
received every five years.
Newlink Business Park is strategically located two minutes from
the A1 and A46 interchange, providing good motorway connectivity
north and south via the A1/A1M and onto the M1. The site benefits
from good rail services with Newark North Gate Station located less
than two miles from the property.
DTRE represented the Company on the acquisition and Savills
represented the vendor.
Colin Godfrey, Partner of Tritax, commented:
"This National Distribution Centre at Newark is a strong
addition to the foundation income within our overall portfolio of
28 Big Box logistics assets and has been acquired at a level which
is accretive to our portfolio's current average net initial yield.
It further diversifies our tenant and geographic mix and maintains
the weighted average unexpired lease term across the portfolio at
approximately 16.5 years. Dixons Carphone plc is one of the largest
pure electrical retailers with a growing online presence and we are
pleased to have been able to secure this key asset."
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 Tel: 020 7029 8000
Limited
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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