(Alliance News) - Tritax Big Box REIT PLC said Friday it has acquired a temperature-controlled distribution unit within the Nursling Industrial Estate in Southampton, for GBP44.2 million.
Tritax said the deal reflects a net initial yield of 5.24%.
The GBP44.2 million consideration will be financed through GBP24.2 million of existing resources and the issue of 12.2 million new shares at 164.38 pence per share.
Shares in Tritax Big Box REIT were down 0.9% in London on Friday morning at 163.58 pence each.
The building is let to grocer Tesco PLC, Tritax said, but the lease expires this coming January. The real estate investor believes the site provides a range of opportunities to deliver near-term value through asset management, which could involve renewing the lease with Tesco or seeking a new tenant.
"The acquisition secures an attractive asset in a prime logistics location, providing critical cold-store capabilities close to a key UK port," Tritax said.
Colin Godfrey, Tritax's Chief Executive of Fund Management, said: "This is a rare asset acquired off-market in a prime south coast location next to the M27 motorway and close to the Port of Southampton. Benefitting from a strong existing tenant and a robust underlying occupational market, this building presents us with several attractive asset management opportunities which we expect will drive income and capital value growth.
"While the investment market for logistics assets continues to strengthen, there remain select attractive acquisition opportunities where significant value can be added through asset management."
By Paul McGowan; paulmcgowan@alliancenews.com
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Tritax Big Box (BBOX)