Tritax Big Box REIT has acquired an 872,000 sq ft (81,000 m2) distribution unit in Avonmouth for £90 mln (€104 mln), reflecting an attractive net initial yield of 5.1%.
Secured through an off-market acquisition, the asset expands the company’s exposure to the South West of England. The building is let to Accolade Wines, one of the world’s largest wine companies by volume and the leading producer and distributor of wine in the United Kingdom and Australia.
Constructed in 2008, the building is the largest wine production, warehouse and distribution centre in Europe, distributing to all major UK supermarkets and European markets and providing approximately 20% of the UK’s wine supply.
It offers 12.8 years of unexpired lease term in an attractive reversionary position, with five-yearly rent reviews providing a minimum of CPI uplifts and opportunities to add further value through a potential lease extension.
‘In line with our strategy, we continue to monitor the market closely for attractive acquisition opportunities,’ said Colin Godfrey, CEO, Fund Management at Tritax. ‘This is a key asset, let to one of the world’s largest wine companies by volume, in a strong and increasingly important location for logistics in the UK.’
