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(Alliance News) - Tritax Big Box REIT PLC on Wednesday said it has acquired an 872,000 square foot distribution unit in Avonmouth, England for GBP90 million.
The FTSE 250-listed company which invests in distribution centres said the unit reflects a net initial yield of 5.1% for a 13-year income.
Tritax said the building is let to Accolade Wines Ltd, a producer and distributor of wine in the UK and Australia. The building is where Accolade distributes wine from to all "major" UK supermarkets and European markets, providing 20% of the UK's wine supply.
"This state-of-the-art asset, acquired off-market, provides a valuable and long-term income stream. The tenant has committed heavily to this award-winning facility, which is the largest wine warehouse and distribution centre in Europe. Thanks to a combination of buying well, strong market fundamentals and opportunities for value enhancing asset management initiatives, we believe this building will deliver a very attractive return to our shareholders," said Chief Executive Colin Godfrey.
Shares in Tritax Big Box REIT were down 0.1% at 190.68 pence in London on Wednesday.
By Zoe Wickens; zoewickens@alliancenews.com
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