Tritax Big Box has exchanged contracts to forward fund the £89.3m development of a national distribution centre at Midlands Logistics Park in Corby, Northamptonshire, reflecting a net initial yield of 5.2%.
The property, which is pre-let to BSH Home Appliances, part of the Bosch Group, on a 10-year lease will provide 945,375 sq ft of space and become BSH’s largest UK distribution centre.
The lease is subject to five-yearly, upward-only rent reviews indexed to the Retail Price Index, subject to a cap and collar.
Tritax Big Box will receive an income return equivalent to the rent from completion of the land purchase and during the construction phase.
Subject to planning approval, the property is expected to reach practical completion in autumn next year.
Midlands Logistics Park is potentially capable of accommodating approximately 5m sq ft of logistics space and has attracted other occupiers including Eddie Stobart, Wincanton, Matalan and Morrisons.
Colin Godfrey, partner of Tritax, said: “This transaction also provides the company with further exposure to an emerging well-connected East Midlands logistics park south of Corby.
“This off-market investment adds to our portfolio’s core foundation income and offers good potential for rental growth.”
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