Tritax Big Box REIT has exchanged contacts to forward fund the £68.7m development of a warehouse in Haydock, St Helens, Merseyside.
The shed, being developed by Bericote, is prelet to Amazon. The price reflects a net initial yield of 4.9%, rising to 5.4% at the first rent review in 2024.
The gross internal floor area is 361,062 sq ft but the site could accommodate a building of around 700,000 sq ft.
The building will be let on a new 15-year lease, subject to five-yearly upward-only rent reviews indexed to the Consumer Price Index and collared at 1% per annum and capped at 3% per annum. The first rent review is targeted for September 2024.
Tritax partner Colin Godfrey said: “We worked very closely with the customer and Bericote to deliver this off-market prelet development, which provides the company with further exposure to a market-leading occupier. Once operational, the building will represent one of the most advanced sortation buildings in the UK on a site with very low site cover, whilst further diversifying the company’s portfolio by geography in an established logistics hub with strong labour supply.”
DTRE acted for Tritax.
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