Specialist UK logistics investor Tritax Big Box Reit has purchased three logistics facilities in the UK for a combined price of £88 mln (€99 mln) from two seperate vendors.
Tritax exchanged contracts to acquire a property at Harlow Logistics Hub in Harlow for £44 mln (€50 mln), let to two tenants. Logistics service provider Wincanton Holdings represents 62% of the rent, on a lease with 4.5 years still to run. The other tenant, professional power tools supplier Industrial Tool Services, represents 38% of the rent. Its lease has an unexpired term of around 14 years with a lease break in nine years.
'We are very pleased to have acquired this modern facility in a key South East distribution location,' commented Colin Godfrey, partner of Tritax. 'The South East has a high demand from occupiers requiring close access to London, but limited supply due to competition from high value alternative land uses.
'The investment further diversifies our portfolio tenant mix and also provides opportunity for rental growth and capital value enhancement from either lease renewal or re-letting.'
Built in 2008, the high specification logistics unit has a total gross internal area of 390,092 ft2 (36,000 m2) and an eaves height of 11.5 metres. The property is positioned close to the M11, the M25 and Central London.
Regional UK acquisitions
Tritax also announced exchanging contracts to acquire two separate, modern logistics facilities from a single vendor for a combined purchase price of £43.86 million, which are both being funded from equity.
'These investments add two new quality tenants, which we welcome to our portfolio, whilst also providing geographic and business sector diversification,' said Godfrey.
In Worksop, Nottinghamshire, at Dukeries Industrial Estate, it purchased a facility let to Cerealto (UK) Limited and guaranteed by its ultimate parent company, Grupo Siro Corporativo SL, a global private label food manufacturer. The total consideration is £20.25 mln (€23 mln), reflecting a net initial yield of 6.62% on the corporate acquisition.
The property has a gross internal floor area of 330,807 ft2 (30,600 m2). It has been acquired with an unexpired lease term of approximately 18 years.
Tritax also acquired, from the same vendor, the Stobart Group Limited regional distribution centre at Carlisle Lake District Airport, Cumbria. Let to UK-infrastructure service firm Stobart, the total consideration is £23.61 mln (€26.5 mln), reflecting a net initial yield of 5.31% on the corporate acquisition.
The property, which was purpose-built in 2015, has a gross internal floor area of 314,981 ft2 (29,170 m2). It is being acquired with an unexpired lease term of approximately 18 years.
Knight Frank represented the company on the acquisitions.
