Tritax Big Box REIT has purchased its second UK regional distribution facility in just over a week, taking its spending for April to €99 mln.

Tritax Big Box REIT has purchased its second UK regional distribution facility in just over a week, taking its spending for April to €99 mln.

The London-listed REIT exchanged contracts on the Argos Regional Distribution Centre in Heywood, Manchester, for £34.1 mln (€47.8 mln), reflecting a net initial yield of 5.3%. Completion is expected to take place by the end of the month.

Tritax said the purchase was being funded from equity proceeds, with senior debt finance expected to be introduced in the near term. It follows the acquisition of the Brake Bros Ltd facility in Harlow, Essex, for €51 mln.

The Argos centre has an unexpired lease term of approximately 13 years, subject to five-yearly open market reviews, with the next one due in 2018.

Buchanan Bond represented Tritax, while Rapleys represented the vendor.

Colin Godfrey, partner of Tritax, said: ‘The property is strategically positioned to service large parts of the North-West region, supporting Argos’ e-retail and click and collect growth in the region.’