ACQUISITION OF THE DHL DISTRIBUTION WAREHOUSE

RNS Number : 5919P

Tritax Big Box REIT plc

20 August 2014

 



20 August 2014

TRITAX BIG BOX REIT PLC

(the "Company")

ACQUISITION OF THE DHL DISTRIBUTION WAREHOUSE SKELMERSDALE, LANCASHIRE FOR £28.87 MILLION

The Board of Tritax Big Box REIT plc (LSE: BBOX) is pleased to announce that it has exchanged contracts on the DHL Supply Chain Ltd ("DHL") warehouse at Skelmersdale, Lancashire for a purchase price of £28.87 million (net of acquisition costs), reflecting a net initial yield of 6.5% on the asset acquisition, assuming 6.6% purchase costs. Completion is expected to take place on 27 August 2014. The purchase has been funded out of equity proceeds, with senior debt finance expected to be introduced in the near term.

Skelmersdale is strategically located approximately one mile from Junction 4 of the M58 motorway and five miles from Junction 6 of the M6. The Port of Liverpool is approximately 14 miles away, where construction is underway on a new container port, which will be capable of bringing some of the world's largest container ships into the North West region.

The unit was originally constructed in 2003 and comprises a highly specified and fully fitted distribution facility with ancillary offices and extensive car parking over approximately 29.5 acres, with a rentalised area of 471,968 sq ft, thereby representing a low site cover of 36%. The warehouse has an eaves height of 12.75m. 

The Skelmersdale distribution warehouse is being acquired from DHL with a new 10 year leaseback agreement, which is subject to five yearly open market rent reviews, and a current passing rent of approximately £2.0 million per annum (£4.25 per sq ft). The next rent review is due in August 2019. DHL has committed to significant capital expenditure to fit the unit out in order to fulfil a new distribution contract, which will also operate as a multi contracted facility.

SG Commercial and Cedarwood represented the Company and Jones Lang LaSalle represented the vendor.

Colin Godfrey, Partner of Tritax, commented:

"We are pleased with our acquisition of the DHL Supply Chain warehouse in Lancashire. Its strategic location and the lack of similarly available units, when combined with the opening of the new container port in Liverpool in 2015, make it a good purchase with an excellent income stream."

For further information, please contact:

Tritax Group Colin Godfrey (Partner, Fund Manager)	via Newgate Communications
Newgate Communications (Financial PR) James Benjamin Clotilde Gros Georgia Lewis	Tel: [phone] Email: [e-mail]
Jefferies International Limited Gary Gould Stuart Klein Alex Collins	Tel: [phone]
Akur Limited Anthony Richardson Tom Frost Siobhan Sergeant	Tel: [phone]

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 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 first 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.tritaxbigboxreitplc.co.uk 

 

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