Tritax Big Box REIT has exchanged contracts to buy a Derbyshire Tesco Distribution Centre for £28.6m.
The purchase price – net of acquisition costs – for the Barlborough Links , Chesterfield shed reflects a net initial yield of 6.6%.
Completion is expected to take place on 17 March.
The purchase will initially be funded out of equity proceeds, with senior debt finance expected to be introduced in the near term.
The 500,000 sq ft regional distribution centre, located at Junction 30 of the M1, was developed in 2005 and immediately leased to Tesco for a term of 15 years.
It has an unexpired lease term of around 6.2 years, which is subject to a five-yearly open market rent review in May 2015.
Tritax partner Colin Godfrey said: “This is one of Tesco’s key distribution facilities for general merchandise in the UK. A dearth of large available units is driving strong growth prospects and this highly specified building with immediate access to the M1 is well placed to benefit.”
Jones Realty advised the vendor; TRW Real Estate represented Tritax.
bridget.oconnell@estatesgazette.com
