Tritax Big Box REIT buys £33m Midlands hub

By Kasmira Jefford - Thursday, September 07, 2017 9:58

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Tritax Big Box REIT has acquired a regional distribution centre at Riversdale Road, Atherstone let to the Royal Mail for £32.68m, reflecting a 6.1% yield.

The 381,091 sq ft facility provides a centrally located regional distribution centre in the Midlands and has recently benefited from significant capital investment with further capital investment committed to by Royal Mail for its occupation.

The hub has been acquired with an unexpired lease term of approximately 10 years, subject to upward only five yearly open market rent reviews. The next rent review is due in September 2021.

Located in Atherstone, 21 miles north-east of Birmingham, the facility sits in the so-called Golden Triangle of logistics, home to major occupiers, including Aldi, Jaguar Land Rover and TNT.

Tritax’s two distribution facilities in Birch Coppice, five miles away are let to Euro Car Parts and Morrisons.

DTRE represented the company on the acquisition.

Colin Godfrey, Partner of Tritax, said:“We are delighted to have acquired the Royal Mail’s Regional Distribution Centre for the Midlands at an attractive yield which is accretive to our portfolio income yield and which offers the potential for strong rental growth in 2021 as well as opportunities for future value enhancement. The facility, which is situated in an established core logistics location, has already recently benefited from significant capital expenditure with further investment committed to by the tenant.

The Royal Mail provides an additional strong and established covenant and we are delighted to add Royal Mail to the high calibre list of tenants already represented in our portfolio.”

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