Logistics specialist Tritax Big Box REIT is forward-funding the development of a new national distribution centre at Midlands Logistics Park in Corby, England.
The project, which is pre-let to BSH Home Appliances (BSH), part of the Bosch Group, represents an investment of £89.3 mln (€102 mln), reflecting a net initial yield of 5.2%, net of acquisition costs.
The new prime facility will be purpose-built to a high specification with a gross internal area of 945,375 sq ft (87,800 m2) and will become BSH’s largest UK distribution centre. The site is situated adjacent to a pre-let Eddie Stobart property owned by the company.
Upon practical completion of the construction, targeted for autumn 2019, the property will be let to BSH on a new 10-year lease, subject to five yearly upward only rent reviews.
Colin Godfrey, partner of Tritax, commented: 'This off-market investment adds to our portfolio’s core foundation income and offers good potential for rental growth.'
Tritax Big Box REIT raised £300 mln in an IPO last summer to invest in mainland European warehouses.