Tritax Big Box REIT has bought the Range UK’s national distribution centre at Nimbus Park in Doncaster for £48.5m, using a £24.25m senior debt refinancing for the deal.
It has been purchased from a limited partnership vehicle managed by Tritax, in which Tritax partners and beneficiaries have a 2.29% equity interest.
Barclays Bank will provide the five-year loan, which reflects an LTV of 50%, with completion and drawdown expected on 19 November 2014. It has an extension option to a maximum of seven years.
The purchase of the 750,431 sq ft distribution centre, built in 2006, reflects a net initial yield of 6.1%. It has an unexpired lease term of around 18 years with the next rent review on 1 October.
The property has been independently valued by CBRE.
It comes as Tritax released a trading update for the period 1 July to 12 November that revealed the firm now had market capitalisation of around £400m.
Tritax has moved its trading from the specialist fund market to the main market of the London Stock Exchange during the period, and raised £150m in an oversubscribed placing at 103p per share in July 2014.
Asset value per share increased from 101.85 pence as at 30 June 2014 to 102.60 pence as at 31 October 2014, an increase of 0.74%.
The Tritax property portfolio as of 31 October was valued at £516.1m, spread over 11 properties with a 6% weighted average net initial yield and unexpired weighted average lease terms of 14.9 years.
Tritax partner Colin Godfrey said: “Doncaster is recognised as one of the most important distribution locations in the UK and consequently attracts major distribution occupiers such as B&Q, Asda, Next, DFS and Ikea due to its excellent transport links and a relatively uncongested motorway network.
“Tritax Big Box REIT plc is delighted to have made this acquisition, which provides long-term income subject to fixed increases, together with providing tenant diversification to our growing portfolio.”
