Tritax purchases two warehouses in northern England for €70m

Tritax Big Box REIT has acquired two warehouses in the UK for a combined sum of £55 mln (almost €70 mln), reflecting a net initial yield of 6.9%.

Trafford Park in Manchester is a 29,000 m2 facility let to L’Oreal (UK) until 2019, while Dove Valley Park in Foston, Derbyshire, has a floor area of 32,000 m2 and is occupied by Kuehne & Nagel until 2028.

The combined annual income from the two units is £3.8 mln per year. Both properties were acquired from UK privately-held group Topland.

The deal is the second major acquisition in a month by Tritax Big Box, following its purchase of the Nimbus Park distribution centre in Doncaster for €61 mln in mid-November.

Tritax partner Colin Godfrey said: ‘The company has now successfully invested or substantially committed all of the net investable funds from its £150 million equity fundraising in July 2014 with a portfolio comprising 14 UK Big Box assets in aggregate, including these two new acquisitions.’

Mark Kington, managing director of Topland, added: ‘Given the current institutional interest in the industrial property market, this sale represents a great opportunity to divest and redeploy the capital in markets where Topland is better able to add value.’

Topland was represented by Strutt & Parker, with Tritax Big Box REIT advised by JLL.