Tritax Big Box REIT plc Acquisition (8222L)
July 24 2017 - 1:00AM
UK Regulatory
TIDMBBOX
RNS Number : 8222L
Tritax Big Box REIT plc
24 July 2017
24 July 2017
TRITAX BIG BOX REIT PLC
(the "Company")
ACQUISITION OF 124 ACRES OF PRIME LONDON DISTRIBUTION
DEVELOPMENT LAND AT LITTLEBROOK, DARTFORD FOR GBP65 MILLION
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that it has exchanged conditional contracts to purchase
a development site at Littlebrook, Dartford. The freehold of the
former Littlebrook Power Station site has been acquired, for a
total consideration of GBP65million (excluding purchaser's costs),
which is being funded by the Company from equity.
The site occupies a prime location within the M25 motorway and
adjacent to the Dartford Thames River Crossing, providing the
opportunity for the efficient distribution of goods across London
and the home counties. With the Queen Elizabeth II Bridge and
Dartford Tunnel to the east, the site has easy access via J1A to
the M25 Motorway and the wider national motorway network. The site
also has excellent rail and port connectivity.
The site, the location of a former power station which was
decommissioned in 2015, extends to approximately 124 acres. The
entire site is capable of supporting the potential development of
approximately 1.7 million sq ft of logistics distribution
buildings, including several Big Box logistics facilities of over
400,000 sq ft, together with some smaller urban logistics
facilities. Part of the site benefits from existing B8 use class
(storage and distribution) planning consent for c.517,000 sq ft of
the expected c.1.7m sq ft total.
The Company, working in partnership with one of the leading
specialist logistics developers in the UK, Bericote Properties,
intends to apply for planning consent for the remaining land. The
site will be developed in phases, with site preparation costs
estimated at c. GBP25 million. The construction of new buildings
will commence on a pre-let basis and the Company will retain the
developed investment properties to further enhance its existing
investment portfolio.
The Company aims to be able to commence building construction by
Autumn 2018 and, working alongside Bericote Properties aims to
deliver on a pre-let basis one of London's largest Big Box
logistics parks inside the M25 motorway.
Colin Godfrey, Partner of Tritax, commented:
"We are delighted to be acquiring this prime distribution
development site in Dartford. Large strategic sites for Big Box
distribution buildings within the M25 are scarce and are in strong
demand from occupiers. The site is capable of supporting several
Big Box distribution facilities as well as smaller urban logistics
facilities for serving the London and South East markets in
particular. The development of the buildings, in partnership with
Bericote, will only commence on a pre-let basis and provide an
opportunity for the Company to enhance our existing portfolio with
further prime logistics investments at an attractive yield on
cost."
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
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. (measured by floor area, 70% of the Company's
assets are in excess of 500,000 sq ft(1) ), 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
(1) Note: As a 30 June, This figure excludes Howdens II and III
at Wrath Park, Raunds which have exchanged conditionally, subject
to planning.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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