Tritax Big Box REIT has bought a 526,426 sq ft shed site on Prologis Park Sideway, Stoke-on-Trent.
The firm has also issued a share placing as part of a £125m fundraising drive. The placing price reflects a 2.8% discount to the closing price of 116.25 pence per ordinary share on 5 June.
In March Tritax raised £175m and has since committed all of its investable funds.
The firm will forward fund the new shed, prelet to Dunelm (Soft Furnishings), for £43.4m – a 5.47% yield.
The site will make up the largest portion of Dunelm’s occupation at Prologis Park stoke, with two nearby buildings covering around 500,000 sq ft to form the retailer’s distribution centre for the UK.
Upon practical completion, the facility will be leased on a new 10-year lease, subject to a five-yearly, upward-only open-market rent review after five years.
During the construction phase, developer Prologis will pay Tritax an income return equivalent to the rent from the developer.
Prologis is building it out on behalf of its joint venture with Wittington investments, with construction expected to be completed by 2016.
Dowley Turner Real Estate represented Tritax Big Box REIT and JLL represented the vendor.
Colin Godfrey, a partner at Tritax, said: “We are excited to be investing in a new best-in-class distribution warehouse facility for Dunelm, which is making a significant capital investment into the fit-out of its facility.
“We look forward to working with Prologis to deliver a strategically important new logistics hub for Dunelm at this key logistics location, an area which has attracted many other major occupiers resulting in some of the highest levels of activity over the past year.”
