Tritax Big Box has exchanged contracts on a £120.7m forward-funded logistics fulfilment centre development pre-let to Amazon in Darlington – a net initial yield of 5%.
The db symmetry development, part of the Link 66 logistics site, will be about 1.5m sq ft once complete, including a ground floor of 542,000 sq ft and two mezzanine floors.
It will be let to Amazon on a 20-year lease, subject to five-yearly upward-only rent reviews. It is understood Amazon will take on significant capital investment on the site, including through automation.
Link 66 is an emerging logistics location in the east of Darlington, near the A1(M), and close to the cargo ports at Tees and Hartlepool, Durham Tees Valley Airport and Darlington railway station.
Colin Godfrey, partner at Tritax, said: “We worked very closely with both occupier and db symmetry in the delivery of this off-market pre-let development.
“Once operational the facility will be one of the most technologically advanced buildings of its kind in the UK. The investment diversifies the company’s portfolio by geography and provides further exposure to a high-calibre tenant on a long-lease.”
DTRE represented Tritax Big Box. CBRE represented db symmetry.
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