The Board of Tritax Big Box REIT plc announces that it has exchanged contracts on a regional distribution center at Flex Meadow, Harlow, let to Brake Bros Ltd, for a purchase price of £37.2 mln (approx. €51.4 mln), which reflects a net initial yield of 5.0%. The purchase has been funded out of equity proceeds, with senior debt finance expected to be introduced in the near term. Completion is expected to take place in June 2015.
The asset is strategically positioned in a core South East location, close to the M11, the M25 and Central London, providing distribution reach across the South East. It is currently undergoing a comprehensive refurbishment program (fully financed by the tenant) and comprises a rental area of approximately 24,898 m², a low site cover of 37%, and features cross dock loading and a temperature controlled environment.
It is being acquired from LondonMetric Property Plc with an unexpired lease term of approximately 24.5 years, subject to five yearly upward only rent reviews indexed to RPI, and capped at 5% p.a. compound.
Colin Godfrey, Partner of Tritax, commented: “We are pleased to be doing business with LondonMetric in the acquisition of this regional logistics warehouse at Harlow. The location, being in close proximity to the M25, is well positioned for distribution to the Greater London market and enhances our portfolio in the South East. The investment provides good quality long term income which will potentially benefit from attractive rent reviews. Brake Bros also provides further tenant diversification for the Company’s portfolio.”