Tritax Big Box REIT has completed the land purchase and exchanged contracts to provide forward funding for the development of a new distribution facility at Prologis Park Fradley in Staffordshire.
The development represents an investment of £52.7m – a net initial yield of 5.5%. It has been prelet to Screwfix Direct on a 10-year lease.
Completion is targeted for October 2017 for the 562,000 sq ft facility. During the construction phase, the company will receive an income return equivalent to the agreed rent from the developer.
The development is being undertaken by Winvic Construction and is guaranteed by Prologis UK on behalf of Tango Real Estate, a joint venture vehicle between Prologis and Wittington Investments (Developments).
The land purchase has been funded by the company from equity proceeds, with senior debt finance to be introduced in the near term.
DTRE represented Tritax; JLL represented the vendor.
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