Tritax Big Box REIT has continued its spring shopping spree in the UK regions with the acquisition of a regional distribution centre for £89.75 mln (€125 mln).

Tritax Big Box REIT has continued its spring shopping spree in the UK regions with the acquisition of a regional distribution centre for £89.75 mln (€125 mln).

The distribution property specialist bought the B&Q Core Products Regional Distribution Centre in Worksop, Nottinghamshire, at a net initial yield of 5.13%.

The property has been acquired with an unexpired lease term of more than 16 years, subject to five yearly reviews capped at 5%. The purchase has been funded from equity proceeds, with senior debt finance expected to be introduced in the near term.

Planning consent is in place to expand the facility from its current size of 81,300 m2 to 102,000 m3.

Partner Colin Godfrey said: ‘This off-market investment further diversifies our range of tenants and increases to 15.4 years the weighted average unexpired lease term of our portfolio, which now comprises 18 high-calibre property assets.’

This month Tritax has also acquired the Argos Regional Distribution Centre in Heywood, Manchester, for £34.1 mln, and the Brake Bros distribution facility in Harlow, Essex, for £37 mln.