Tritax Big Box REIT has exchanged contracts to buy a national distribution centre let to DSG Retail for £77.3m – a 5.86% yield.
The property is one of two national DSG distribution centres located on Newlink Business Park in Newark, Nottinghamshire and forms part of DSG’s principal national distribution hub for direct store replenishment, home deliveries and returns.
The facility has a gross internal floor area of 725,798 sq ft and a low site cover of circa 37%, and has an unexpired lease term of around 20 years with 3% per annum fixed rental increases received every five years.
Colin Godfrey, partner of Tritax, said: “This national distribution centre at Newark diversifies our tenant and geographic mix and maintains the weighted average unexpired lease term across the portfolio at around 16.5 years.”
DTRE acted for Tritax; Savills advised the vendor.
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