UK shed investor Tritax Big Box REIT has completed the forward funding of a new logistics centre in northern England for £147.3 mln (€163 mln).
According to media reports, the asset has been pre-let to e-commerce giant Amazon.
Located at Integra 61, near Durham, the asset's price reflects a net initial yield of 5.25%.
'We worked very closely with our occupier customer to deliver this state-of-the-art, pre-let development, which provides the company with further exposure to a market leading occupier,' said Tritax partner Colin Godfrey.
'Strategically located in an increasingly important logistics location with a strong labour supply, this asset, once operational, will be the largest single let logistics facility outside the South East, as well as one of the most technologically advanced fulfilment centres in the UK, whilst providing further exposure to a high calibre tenant on a long lease.'
The development will comprise a new prime purpose-built facility, with an internal floor area of around 1,992,061 ft2 (185,000 m2). The occupier is planning significant capital investment, including automation, Tritax said.
On practical completion of the construction, targeted for summer 2020, the occupier will take up a new 20-year lease, subject to five yearly upward only rent reviews.
During the construction phase, the company will receive an income return equivalent to the annual rent from the developer.
The investment is being delivered in collaboration with the occupier and the Citrus Group, who will also be developing the remainder of the 200 acre Integra 61 project.
DTRE represented Tritax, while CBRE represented the occupier and Avison Young represented Citrus Group.
