Tritax Big Box REIT plc Completes Contracts on Forward Fund Investments (8100B)
January 15 2018 - 1:00AM
UK Regulatory
TIDMBBOX
RNS Number : 8100B
Tritax Big Box REIT plc
15 January 2018
15 January 2018
TRITAX BIG BOX REIT PLC
(the "Company")
COMPLETES CONTRACTS ON THE FORWARD FUNDED INVESTMENT IN TWO NEW
DISTRIBUTION FACILITIES AT WARTH PARK, RAUNDS, NORTHAMPTONSHIRE
PRE-LET TO HOWDEN JOINERY GROUP PLC
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that the Company has completed contracts for the site
acquisition and forward funding for the development of two new
distribution warehouse facilities at Warth Park, Raunds. The
properties are pre-let in their entirety under two separate 30 year
leases to Howdens Joinery Group Plc ("Howdens"), the parent group
of the leading supplier of kitchens in the UK.
Contracts were originally exchanged, conditional on planning
consent, in December 2016. Completion was delayed due to a
prolonged challenge to the planning consent which has now been
cleared. The agreed investment price has been amended to GBP103.7
million, to reflect a longer construction period due to the delayed
planning consent and revised construction programme. The purchase
price represents a net initial yield of 5.0% (net of land
acquisition costs) upon completion of the leases.
Warth Park, at Raunds, Northamptonshire is strategically located
on the A45 corridor close to J13 of the A14, which provides access
to the ports of Felixstowe and Harwich and also directly links to
the A1(M) dual carriageway and the M1 motorway. The two
distribution facilities, which will stand adjacent to one another
and to the Company's existing Howdens facility, are under separate
freehold titles and will be completed to a high specification with
target gross internal floor areas of 657,000 sq ft and 300,000 sq
ft., respectively.
Both buildings will have an eaves height of 15 metres and a
combined site cover of approximately 53%. Completion of the
construction of the two facilities is due to take approximately 21
months with completion of the two new leases expected by winter
2019.
Colin Godfrey, Partner of Tritax, commented:
"Following the successful completion of the first Howdens
building, which the Company agreed to forward fund in September
2015, we are delighted to be investing on the second phase of
Howdens' two new distribution centres. Once completed, these three
high specification facilities totalling 1.6 million sq ft will
provide Howdens with a 'centre of excellence' for its national
supply chain operations.
This investment is in an established logistics location with a
strong covenant, adds to our portfolio's core foundation income and
brings our total portfolio to 48 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
Anna Geffert
Jefferies International Tel: 020 7029 8000
Limited
Gary Gould
Stuart Klein
Akur Limited Tel: 020 7493 3631
Anthony Richardson
Tom Frost
Siobhan Sergeant
The Company's LEI is: 213800L6X88MIYPVR714
NOTES:
Tritax Big Box REIT plc is the only listed vehicle dedicated to
investing in very large logistics warehouse assets ("Big Boxes") in
the UK and is committed to delivering attractive and sustainable
returns for shareholders. Investing in and actively managing
existing built investments, land suitable for Big Box development
and pre-let forward funded developments, the Company focuses on
well-located, modern "Big Box" logistics assets, typically greater
than 500,000 sq. ft. (measured by floor area, c.66% of the
Company's existing logistics facilities including forward funded
developments are in excess of 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 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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