09/25/2021 | Press release | Distributed by Public on 09/25/2021 01:20
Provides attractive long-term income with opportunities to add further value.
Tritax Big Box REIT plc (Tritax Big Box or the Company) today announces it has acquired an 872,000 sq ft distribution unit in Avonmouth for £90 million, reflecting an attractive net initial yield of 5.1% for c.13 year income.
Large scale and attractively priced state of the art asset in a strengthening logistics location
Secured through an off-market acquisition, the asset expands the Company's exposure to the increasingly important South West of England:
Providing critical space to a world-leading customer
The building is let to Accolade Wines Limited (the Customer), one of the world's largest wine companies by volume and the leading producer and distributor of wine in the United Kingdom and Australia. The building is a key component of the Customer's supply chain used for receiving then bottling wine for sale into the key UK and European markets.
Delivering long-term income and value growth
The asset offers 12.8 years of unexpired lease term in an attractive reversionary position, with five-yearly rent reviews providing a minimum of CPI uplifts, opportunities to add further value through a potential lease extension, and ESG related asset management initiatives aligned to the Customer's commitment to Net Zero Carbon.
Colin Godfrey, CEO, Fund Management at Tritax, commented:
"In line with our strategy, we continue to monitor the market closely for attractive acquisition opportunities. This is a key asset, let to one of the world's largest wine companies by volume, in a strong and increasingly important location for logistics in the UK.
"This state-of-the-art asset, acquired off-market, provides a valuable and long-term income stream. The tenant has committed heavily to this award-winning facility, which is the largest wine warehouse and distribution centre in Europe. Thanks to a combination of buying well, strong market fundamentals and opportunities for value enhancing asset management initiatives, we believe this building will deliver a very attractive return to our shareholders."
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tritax Group +44 (0) 20 8051 5057
Colin Godfrey (CEO, Fund Management)
Frankie Whitehead (Finance Director)
Ian Brown / Jo Blackshaw (Investor Relations)
Maitland/AMO (Media enquiries)
James Benjamin +44 (0) 7747 113 930
[email protected]
The Company's LEI is: 213800L6X88MIYPVR714