Tritax acquires warehouse to be let to Howden Joinery Group

7th Sep 2015 08:40

(ShareCast News) - Real investment trust Tritax Big Box REIT said it has reached an agreement to acquire the land that will host a new distribution warehouse for kitchen and joinery supplier Howden Joinery Group.The £67m deal will see the FTSE 250 group acquire the land and redevelop the existing facility, which is located Warth Park in Raunds, Northamptonshire.Tritax said the new distribution centre will comprise a gross internal area of approximately 655,000 sq ft, across a site of approximately 32.52 acres, adding it expects construction to begin in September 2015 and be completed in June 2016.Upon completion, the facility will then be leased to Howden on a 30-year lease without break."We are excited to be investing in a new national distribution centre for Howdens, which provides further tenant and geographic diversification," said group partner Colin Godfrey."The investment also increases the weighted average unexpired lease term and is accretive to our running yield."Tritax shares were up 0.38% to 122.36p at 0858 BST on Monday.