Tritax Big Box REIT has bought the Wolseley Regional Distribution Centre at Ripon, North Yorkshire, for a purchase price of £12.24m.
The purchase represents a net initial yield of 6.73%, and is funded out of equity proceeds with senior debt finance expected to be introduced in the near term.
Ripon is one of three RDC’s in the UK for Wolseley UK Ltd with the others located in Worcester and Bedford.
Constructed in 2001, the property covers around 10.9 acres, with a rental area totalling 221,747 sq ft, providing a low site cover of approximately 46%. The warehouse has an eaves height of 12m.
The distribution warehouse is being acquired with an unexpired lease term of approximately 12.5 years, which is subject to five yearly open market rent reviews. The current passing rent is £838,500 per annum (£3.78 per sq ft) with the next rent review due in September 2016, which is expected to be reversionary.
SG Commercial and WHY represented the company. Cushman & Wakefield represented the vendor.
Tritax partner Colin Godfrey said: “We are delighted with our acquisition of the Wolseley regional distribution centre at Ripon, which is Wolseley’s sole centre serving the North of England, Scotland and Northern Ireland with immediate motorway connectivity. It also provides tenant diversification to our current portfolio.”
