UK logistics specialist Tritax Big Box REIT has acquired a distribution facility in Birmingham operated by Ocado for £92.33 mln (€105 mln), reflecting a net initial yield of 5.25%.
The purchase of the facility, which serves both Ocado's and Morrisons' online retail businesses, is being funded by equity, according to Tritax. Morrisons will act as guarantor.
'The acquisition of this Morrisons’ distribution facility, operated by Ocado, builds upon our strong working relationship with both retailers. The property will provide long-term income in one of the most sought after locations within the "Golden Triangle" providing access to 85% of the UK within 4.5 hours,' commented Colin Godfrey, partner of Tritax. 'Our portfolio now comprises 38 UK Big Box logistics assets.'
The building, which was constructed in 2012 for Ocado, has a gross internal area of over 700,000 ft2 (65,000 m2). The investment has been acquired with an unexpired lease term of approximately 21 years with no tenant break.
The UK's logistics 'Golden Triangle' refers to a prime zone in the country's Midlands with excellent airport and motorway connectivity, including close proximity to the M6, M1, M69 and M6 as well as Birmingham International and East Midlands airports.
