Tritax purchases new strategic distribution site

22nd Sep 2015 08:28

(ShareCast News) - Tritax Big Box REIT has bought a new regional distribution facility, and pre-let it out to TK Maxx.The FTSE250 listed real estate investment trust bought the site at the junction of the M62 and A1 directly off the J33 roundabout for £59m.The new distribution facility is expected to benefit from the planned lane expansion on the M62 between West Yorkshire and Manchester, and from the upgrading of long stretches of the A1 to motorway status by 2017.The property will be leased to TK Maxx on a new 20 year lease, subject to five yearly upward only rent reviews.That will provide a minimum 1% pa rental growth, capped at 3% pa.Tritax partner Colin Godfrey said the acquisition is a strong addition to the group's portfolio."The property occupies a key logistics location that is achieving strong rental growth."This purchase takes our total pre-let forward funded developments to six assets, including the recently completed initial construction phase of the development let to Rolls-Royce Motor Cars at Bognor, due to deliver, in aggregate, over three million square feet of new logistics buildings by the beginning of 2017."The distribution centre is due to be completed in January 2017.