Tritax Big Box REIT plc ACQUISITION OF AMAZON DISTRIBUTION CENTRE (7336G)
August 10 2016 - 1:00AM
UK Regulatory
TIDMBBOX
RNS Number : 7336G
Tritax Big Box REIT plc
10 August 2016
10 August 2016
TRITAX BIG BOX REIT PLC
(the "Company")
ACQUISITION OF THE AMAZON DISTRIBUTION CENTRE AT KINGSTON PARK,
PETERBOROUGH FOR GBP42.9 MILLION
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that it has acquired the distribution centre at
Kingston Park, Peterborough, let to Amazon UK Services Ltd
("Amazon") (and guaranteed by Amazon EU Sarl), for a purchase price
of GBP42.9 million (net of acquisition costs), reflecting a net
initial yield of 5.6% on the corporate acquisition. The purchase is
being funded from equity proceeds, with senior debt finance
expected to be introduced in the near term.
The property is one of Amazon's major distribution centres in
the UK, fulfilling general merchandise online orders and groceries
throughout the UK and Europe. The distribution centre has benefited
from significant capital investment from the tenant with further
initiatives currently underway. The property was built to a high
specification in 2006, comprising an eaves height of 15 metres,
offices, a secure HGV trailer park and extensive parking. The
facility has a gross internal floor area of 549,788 sq ft with a
low site cover of approximately 42%.
Kingston Park, Peterborough is well positioned in a core
logistics location with excellent motorway connectivity across the
UK, located just off junction 17 of the A1M, and links to the M1
(via A47) and A14, which provides a direct route to the Port of
Felixstowe and the Midlands. Furthermore, Peterborough was the
second fastest growing UK city over the last 10 years (as at 2015),
thereby providing a large and growing workforce to draw from,
underpinning the longevity of the area as a major UK distribution
location.
The property is being acquired with an unexpired lease term of
approximately 8.7 years subject to five yearly upward only rent
reviews indexed to the Consumer Price Index (collared and capped at
1.5% p.a. and 2.75% p.a.). The next rent review is due in April
2020. The passing rent is c. GBP4.50 per sq ft with a capital value
cost equivalent to approximately GBP78 per sq ft.
Colin Godfrey, Partner of Tritax, commented:
"We are very pleased to have acquired our first distribution
centre let to Amazon, the UK's number one online retailer. The
asset is important to Amazon which has committed significant
capital into its fit out of the facility. This investment is a
strong addition to our portfolio, now comprising of 31 Big Box
logistics assets, and was acquired at a level which is accretive to
our portfolio's current average net initial yield. It also further
diversifies and strengthens our tenant and geographic mix, with
opportunities for potential asset management."
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
Alex Shilov
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
END
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