Tritax Big Box REIT has inked a deal to acquire two modern big box logistics facilities in the UK's midlands region for £115.5 mln (€128 mln).
The assets are located at Birch Coppice, Birmingham and at Warth Park, Raunds, Northamptonshire, and are let to Euro Car Parts and Whirlpool UK Appliances respectively.
'We are very pleased to have agreed to acquire these two complementary big box distribution facilities. These acquisitions will add two new established covenants to the strong list of tenants in our portfolio, which will then comprise 33 big box assets,' commented Colin Godfrey, Partner of Tritax.
'The Euro Car Parts' new National Distribution facility will provide long-term income in one of the most sought after locations within the "Golden Triangle". The net initial yield of the Whirlpool facility will be accretive to our portfolio running yield and the short unexpired lease term presents an opportunity for value enhancement in an established logistics location upon re-letting or lease re-gear,' Godfrey added.
Completion of the purchases is conditional on the successful completion of a share issue, announced in September, and should occur around 20 October 2016.
Tritax said it also expected to complete on a third acquisition shortly.
