Tritax Big Box REIT has exchanged on the purchase of the B&Q regional distribution centre in Worksop, Nottinghamshire, for £89.8m – a 5.13% yield.
The 875,350 sq ft centre, built in 2005 for B&Q, has planning permission to increase in size to 1.1m sq ft.
It has an unexpired lease term of 16.5 years, subject to five-yearly rent reviews to the higher of the open market rent or the retail price index and capped at 5%. The next review is due in November 2016.
The purchase has been funded out of equity proceeds. Denior debt finance is expected to be introduced in the near term.
Colin Godfrey, partner at Tritax, said: “This off-market investment further diversifies our range of tenants and increases to 15.4 years the weighted average unexpired lease term of our portfolio, which now comprises 18 high-calibre property assets.”
Colliers and SG Commercial LLP advised Tritax on the acquisition.
