Tritax Big Box REIT plc Forward funded investment (4892X)
February 22 2017 - 1:01AM
UK Regulatory
TIDMBBOX
RNS Number : 4892X
Tritax Big Box REIT plc
22 February 2017
22 February 2017
TRITAX BIG BOX REIT PLC
(the "Company")
FORWARD FUNDED INVESTMENT IN A NEW PRE-LET DISTRIBUTION CENTRE
AT
SIGNIA PARK, DIDCOT, OXFORDSHIRE
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that it has completed the land purchase and exchanged
contracts to provide forward funding for the development of a new
distribution centre at Signia Park, Didcot, Oxfordshire, pre-let to
Hachette UK Ltd ("Hachette UK"), whose ultimate parent is Lagardere
SCA, a multinational media conglomerate listed on Euronext, Paris.
Hachette UK is a leading UK publishing company. The development
represents an investment of GBP29.24 million, reflecting a net
initial yield of 5.82% (net of acquisition costs to the
Company).
The site is situated in a core South East logistics location,
which benefits from excellent road and rail connectivity via the
A34, M4 and M40 motorways and Didcot Parkway Rail Station
respectively. Didcot has attracted a number of occupiers including
Screwfix, XPO Logistics, and BetterBathrooms, as well as the Tesco
Distribution facility in Southmead Industrial Estate, which was
acquired by the Company in 2014.
The new development will become Hachette UK's main national and
a global distribution centre. The property will benefit from
significant capital investment from the tenant, including high
levels of automation. The facility will be purpose-built to a high
specification, with a gross internal floor area of approximately
242,067 sq ft. and an eaves height of 20 metres, together with
extensive parking. The property has a low site cover of
approximately 40%.
Upon practical completion of the construction, targeted for July
2017, the property will be leased to Hachette UK on a new 15-year
lease, subject to five yearly upward only open market rent reviews.
During the construction phase, the Company will receive an income
return equivalent to the agreed rent from the developer.
The development is being constructed by Winvic Construction Ltd
and being developed by Clowes Developments (UK) Ltd, the ultimate
parent company for the developer. The land purchase has been funded
by the Company from equity proceeds, with senior debt finance
expected to be introduced in the near term.
GVA represented the Company and JLL represented Clowes
Developments (UK) Ltd, the vendor, and Graftongate, the Development
Manager.
Colin Godfrey, Partner of Tritax, commented:
"We are very pleased to be investing in this new national and
global distribution centre for Hachette UK, which will benefit from
operational efficiencies delivered through significant
automation.
This key South East logistics acquisition provides the Company
with further tenant and business sector diversification whilst
maintaining the weighted average unexpired lease term of the
Company's portfolio at over 15 years, and is earnings accretive.
This takes our total portfolio to 38 assets."
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
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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