Tritax has exchanged contracts with Roxhill to forward fund the development of two new distribution warehouses at Warth Park, Raunds, Northamptonshire, for £101.8m – a 5.1% yield.
The schemes are entirely pre-let to Howdens Joinery Group on two 30-year leases, subject to five yearly upward-only open market rent reviews.
The two distribution facilities will have gross internal floor areas of 657,000 sq ft and 300,000 sq ft, respectively.
The site is host to two logistics facilities recently acquired by the company let to Whirlpool and Howdens; other occupiers in the portfolio include Homebase, Morrisons and Primark at Wellingborough, Northampton and Thrapston respectively.
Tritax partner Colin Godfrey said: “This investment is in an established logistics location with a strong covenant and extends the weighted average unexpired lease term of the company’s portfolio to circa 16 years. This represents our ninth and tenth pre-let forward funded development and brings our total portfolio to 37 assets.”
Estimated date of completion is August 2018.
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