UK logistics specialist Tritax Big Box REIT has purchased two Big Box logistics facilities at Prologis Park, Stoke-on-Trent, Staffordshre from ProLogis European Finance XI Sarl for a combined net price of £78.5 mln (€88 mln).
'We are very pleased to have acquired these modern and adjacent Big Box distribution facilities, situated in an established core logistics location with two high quality tenant covenants in M&S and Dunelm,' commented Colin Godfrey, partner of Tritax.
The deal, which will be funded from equity, comprises a 382,594 ft2 distribution centre let to Marks & Spencer which was built in 2008. The property has been acquired with an unexpired lease term of around 8.5 years, and a rent review or lease break in 3.5 years.
The other asset is a 503,389 ft2 facility comprising two interconnected buildings let to homewares retailer Dunelm. The net purchase price reflects a net initial yield of 5.38% on the corporate acquisition. The leases on these buildings expire in three years.
'These value add investments provide opportunity for rental growth and the short unexpired lease terms offer potential for capital value enhancement from either lease renewal or reletting. Value add assets now constitute 17% of our portfolio by value,' concluded Godfrey.
