UK REIT acquires two DHL warehouses for €58m

Tritax Big Box REIT has acquired two UK warehouses in sale-and-leaseback deals with courier firm DHL for a total of £46 mln (€58 mln).

In the largest of the deals, the London-listed investor exchanged contracts to acquire the DHL Supply Chain warehouse at Skelmersdale in Lancashire. The investment volume of £28.87 mln (net of acquisition costs) reflects a net initial yield of 6.5%, assuming 6.6% purchase costs.

DHL is the vendor and is leasing the asset back for a 10-year term at a passing rent of £2 mln per annum.

Tritax funded the acquisition from equity proceeds, with senior debt finance expected to be introduced in the near term.

SG Commercial and Cedarwood represented Tritax and Jones Lang LaSalle represented the vendor.

Tritax also announced that it had exchanged contracts on the DHL Supply Chain warehouse at Langley Mill in Nottingham. The investment volume amounted to £17.5 mln (net of acquisition costs), reflecting a net initial yield of 6.5%.

The Langley Mill distribution warehouse is being acquired from DHL with a new 10-year leaseback agreement and a current passing rent of £1.2 mln per annum. The property was built in 2007 and has a rental area of 24,000 m2.

SG Commercial represented Tritax and CBRE represented the vendor.