Tritax Big Box REIT has exchanged contracts to buy two mega sheds in Birch Coppice business park, Birmingham, and Warth Park, Northamptonshire, for a combined price of £115.5m.
The Birch Coppice shed comprises around 780,977 sq ft and is the national distribution centre for Euro Car Parts. The property is being acquired for £80.1m, a net initial yield of 5.04%. It has an unexpired lease term of approximately 19.4 years and a passing rent of £5.50 per sq ft.
The shed at Warth Park comprises 473,263 sq ft and is let to Whirlpool, the global manufacturer of home appliances. The property is being acquired for £35.4m – a net initial yield of 6.6%. It has an unexpired lease term of 4.3 years and a passing rent of around £5.20 per sq ft.
Completion of the purchases are conditional on the successful completion of the fundraising announced by the company on 28 September, and is expected to occur around 20 October.
Colin Godfrey, partner at Tritax, said: “These acquisitions will add two new established covenants to the strong list of tenants in our portfolio, which will then comprise 33 Big Box assets.”
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