UK logistics REIT Tritax Big Box has acquired a distribution centre in Cheshire, in the north of England, for £36.10 mln (€40.91 mln) from an unnamed vendor.
The national distribution centre, at Weston Road, Crewe, is let to to Expert Logistics, a wholly owned subsidiary of AO World (ao.com), a European online electrical retailer listed on the London Stock Exchange.
'This dedicated e-commerce facility, which plays an integral role in ao.com’s national distribution network, further diversifies our portfolio by tenant and geography,' commented Colin Godfrey, partner of Tritax.
'Against the backdrop of strong tenant demand and the limited supply of modern big box national distribution assets, this investment offers the potential for attractive rental growth in 2021.'
Built in 2006, the 387,541 ft2 (36,000 m2) cross docked facility is located diagonally opposite the tenant’s other distribution facility and together form ao.com’s UK national distribution hub.
The property is being acquired with an unexpired lease term of approximately nine years, which is subject to five yearly upward only open market rent reviews. The next rent review is due in April 2021.
DTRE represented Tritax on the acquisition.
