Tritax Big Box REIT has forward funded a new Big Box development at Warth Park in Raunds, Northamptonshire.
It has paid £67m – a 5% yield – for the 32.5-acre site, which will house a 655,000 sq ft distribution facility that has been prelet in its entirety to kitchen supplier Howden Joinery Group.
Upon practical completion, the facility will be leased to Howden on a new-30 year lease, without break, subject to upward-only open-market rent reviews every five years.
The development is being undertaken by Roxhill, a specialist UK industrial and distribution warehouse developer.
Construction of the main works is expected to commence in September 2015 with practical completion of the construction targeted for June 2016.
The land purchase will be funded by the company from equity proceeds, with senior debt finance expected to be introduced in the near term.
Tritax partner Colin Godfrey said: “We are excited to be investing in a new national distribution centre for Howden, which provides further tenant and geographic diversification. The investment also increases the weighted average unexpired lease term and is accretive to our running yield.”
