LONDON (Alliance News) - Tritax Big Box REIT PLC Wednesday said it has exchanged contracts to acquire a regional distribution warehouse used by Next Group PLC at West Moor Park, Doncaster in a deal worth GBP60 million, reflecting a net initial yield of 6.07%.
The real estate investment firm said it has also signed an agreement with Barclays PLC to provide GBP16.4 million of senior debt financing secured on the asset. This reflects a loan-to-value ratio of around 27%, Tritax said.
The debt financing is for a term of four years, with an option to extend prior to the end of year one up to a maximum of five years.
Completion and drawdown of the loan facility is expected to take place on Tuesday next week.
Tritax said the distribution warehouse was originally developed in 2003 and let to high street retailer Next for a 20-year term without breaks. It incorporates office accommodation and secure loading and car parking facilities. Tritax didn't say from whom it purchased the warehouse.
The distribution warehouse is being acquired with an unexpired lease term of around nine years, which is subject to five yearly upward-only open market rent reviews with the next review scheduled for March 2018.
Tritax shares were quoted up 0.03 pence at 107.53p Wednesday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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Barclays (BARC)
Tritax Big Box (BBOX)
Next (NXT)
