Tritax buys Bristol distribution centre for 5.15% net yield

Tritax Big Box REIT has announced the acquisition of a distribution centre at Portbury Way in Bristol for £25.2 mln (€32 mln), reflecting a net initial yield of 5.15%.

The facility is let to Brake Bros, the UK food wholesalers in the UK and comprises a gross internal floor area of 250,763 sq ft (23,300 m2).

The property is being acquired with a new unexpired lease term of approximately 30 years, which is subject to five yearly upward only rent reviews indexed to the Retail Price Index. The next review is due in February 2021.

Colin Godfrey, Partner of Tritax, commented: 'The property will benefit from significant capital expenditure by the tenant, underlining Brake Bros’ commitment to the asset. The 30 year lease commitment increases the Company’s portfolio weighted unexpired lease term to 16.7 years.'

Colliers represented the vendor.