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Tritax private client property investments

Between 1995 and 2013 Tritax Group focused on acquiring and managing institutional quality, long income commercial property investments for private client and family office investors, with the objective of delivering strong risk-adjusted returns.

During this time, Tritax Group acquired and developed commercial property assets including logistics assets, industrial properties, office, retail and hotels, with an acquisition value of over £2 billion on behalf of 120 syndicates, property unit trusts and limited partnerships.

Since 2000, as a Group we have delivered an average exit IRR across all non-tax products of c.16% pa with several of our tax products achieving a performance in excess of this average.

16% IRR

The Tritax Group started in 1995 with a focus on originating, syndicating and managing commercial property investments for private equity capital, offering property investments structured to make use of available tax reliefs (such as Enterprise Zones) to enhance investors’ returns.

Since 2000, as a Group we have delivered an average exit IRR across all non-tax products of c.16%* pa with several of our tax products achieving a performance in excess of this average.

 *This figure does not include Tritax Big Box REIT or TPIF

£2.16bn

Between 1995 and 2013, the Tritax Group acquired and developed c.£2.16 billion of property assets involving more than 120 investment vehicles, onshore and offshore unit trusts, limited partnerships, companies and LLPs.

12.6m sq ft

Between 1995 and 2013, the Tritax Group acquired and developed c.2.6 million sq ft of commercial property assets, including Big Box logistics assets, industrial properties, office, retail and hotels amounting to contracted rental income of £121.9 million. Tenants included Amazon, Intercontinental Hotels Group, Next Group plc, Sainsbury’s, RBS, Royal Mail, Tesco, GDF Suez, Accor, Marks & Spencer, Accor, HMRC, Asda, Halfords and Morrisons.

Examples of Private Client Investments

Tritax Aberdeen HQ Office Fund

Key Facts

In January 2013, the Fund acquired a new office headquarters building in central Aberdeen, pre-let to GDF Suez E&P UK Limited, the UK arm of the world’s largest utility company.

Total Fund size: £18.5 million
Debt: 
57% LTV
Target Fund life:
 5 years
Target coupon: c. 7.5% pa
Projected IRR: c. 9.8% pa

Further Information

Further Information


Investment Rationale
Constructed over the course of c.12 months, this c.42,000 sq ft award-winning Grade A office was pre-let to GDF Suez E&P UK Limited, the UK arm of the world’s largest utility company[CR1] , for a term of 15 years. The Fund negotiated an attractive entry price of 7.0% net initial yield, providing investors with a highly attractive 7.5% pa target income distribution, paid quarterly, throughout the life of the Fund.

Suitable for SIPPs, SSASs and charities, the simple and tax efficient investment structure also allowed Direct Investors to benefit from the available capital allowances, which enhanced pre-tax distributions to a five-year average of c.10.2% pa (for a 45% tax payer).

“The new Aberdeen Office underlines our commitment to the UK North Sea as we invest in existing and new exploration and production development”

Jean-Claude Perdigues, Managing Director, GDF Suez E&P UK

Tritax Prime Distribution Income Fund

Key Facts

Acquired in November 2013, this modern c.750,000 sq ft national distribution unit is located in one of the UK’s strongest logistics locations.

Total Fund size: £39.8 million
Debt: 46% LTV
Target Fund life
: 4.5 years
Target coupon: c.8.85% pa
Projected IRR: c. 30.92% pa

Further Information

Further Information


Investment Rationale
In May 2013, the Tritax Prime Distribution Income Fund acquired a modern c. 750,000 sq ft national distribution unit let on a 20-year lease (19.5 years unexpired), to CDS (Superstores International) Limited, trading as “The Range”, one of the UK’s leading value retailers. Located in one of the UK’s strongest logistics locations, this Big Box asset was acquired at an effective property cost reflecting a 7.66% net initial yield.

Suitable for SIPPs, SSASs and charities, the simple and tax efficient investment structure also allowed Direct Investors to benefit from the attractive capital allowances available.

Delivering Returns
The original strategy was to hold the asset for four years whilst values improved, with the intention of completing a sale in September 2017. However, in October 2014 an unsolicited offer was received and property was sold in November for a 5.85% net initial yield, providing investors with an IRR of over 30% pa over the 16-month period.

Tritax Next EZ Unit Trust

Key Facts

In 2006 the Trust acquired two new “state of the art” high-bay distribution warehouses of c.1.85 million sq ft GIA, on a site of c.48 acres which is pre-let to Next Group Plc.

Total Fund size: £115.8 million
Debt: 
63% LTV
Target Fund life: 
7 years
Net equity: 
0.13%
Post tax yield: 
6.1%-7.8%

Further Information

Further Information


Investment Rationale
In 2006 the Trust acquired two new “state of the art” high-bay distribution warehouses of c.1.85 million sq ft GIA, on a site of c.48 acres and which is pre-let to Next Group Plc for 25 years with no breaks and fixed rental uplifts of 2.5% pa compounded every five years. This distribution centre is located at Brookfields Park, a new high-quality business park development extending to c.86 acres within an established business area and capable of accommodating up to 2 million sq ft of B8 warehouse, B2 industrial and B1 offices with supporting amenities.

Investors were able to shelter tax at 100% under the Enterprise Zone allowances regime. The investment was structured as an off-shore Unit Trust based in the Isle of Man.

Delivering Returns
In June 2013, following restructuring and optimisation these two new “state of the art” high-bay distribution warehouses were sold to Legal & General at a 5.5% yield, delivering an IRR of over 15% for Trust investors.

Tritax Brindleyplace (7, 8 & 10) Unit Trust

Key Facts

In November 2009, the Trust purchased three interconnected office buildings in the award winning Brindleyplace development.

Total Fund size: £109.6 million
Debt:
59.3% LTV
Fund life:
c. 5 years
Target coupon:
8% pa
Projected IRR: 12.08% pa

Further Information

Further Information


Investment Rationale
Totalling c.301,000 sq ft, all three buildings are let to The Royal Bank of Scotland plc with Sainsbury’s Supermarkets Ltd occupying the ground floor retail unit. Upon purchase, there was a weighted average unexpired lease term of 14.8 years until tenant break options.

Brindleyplace comprises mixed-use development of over 1.2 million sq ft of office, restaurant, café, bars and parking space approximately three quarters of a mile from Birmingham city centre.

Delivering Returns
Having delivered both Direct and Exempt Investors a very attractive an 8% pa distribution, in March 2015, this property was sold to a German pension company for a total consideration of £130.73 million, providing investors with a return of 12.08% pa over the c.six-year Fund life.

The Tritax Amazon Fund

Key Facts

In May 2012, The Tritax Amazon Fund acquired the newly constructed c.1 million sq ft purpose-built Big Box distribution warehouse.

Total Fund size:
£47.1 million
Debt:
56% LTV
Target Fund life:
4.6 years
Target coupon:
7.25% pa
Projected IRR: 9.28% pa

Further Information

Further Information


Investment Rationale
Totalling c.1 million sq ft this purpose-built Big Box logistics asset is prominently located next to the M90 motorway, north of Edinburgh. At a time when many investors sought attractive income returns, but remained cautious, the Tritax Amazon Fund offered a highly attractive 7.25% pa income distribution, underpinned by a 20-year lease to the European arm of the world’s No.1 E-retailer – Amazon.co.uk. Suitable for SIPPs, SSASs and charities, the simple and tax efficient investment structure also allowed Direct Investors to benefit from the available capital allowances.

Delivering Returns
Having delivered both Direct and Exempt Investors with a very attractive 7.25% pa distribution, in March 2017, this c.1 million sq ft Big Box asset was sold on behalf of investors for £54.00 million, which reflects a Net Initial Yield (NIY) of 5.25% based on standard costs of purchase of 6.78%.

Tritax Aberdeen HQ Office Fund

This c.42,000 sq ft Grade A office is pre-let to GDF Suez E&P UK Limited, the UK arm of the world’s largest Utility company, for a term of 15 years.

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Tritax Prime Distribution Income Fund

In May 2013, the Tritax Prime Distribution Income Fund acquired a modern c. 750,000 sq ft national distribution unit let on a 20 year lease (19.5 years unexpired), to CDS (Superstores International) Limited trading as "The Range", one of the UK's leading value retailers.

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Tritax Next EZ Unit Trust

In 2006 the Trust acquired two new "state of the art" high-bay distribution warehouses of c. 1.85m sq ft GIA, on a site of circa 48 acres which is pre-let to Next Group Plc.

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Tritax Brindleyplace (7, 8 & 10) Unit Trust

In November 2009, Tritax Brindleyplace (7, 8 & 10) Unit Trust purchased three interconnected office buildings in the award winning Brindleyplace development in Birmingham. Totalling c. 301,000 sq ft, all three buildings are let to The Royal Bank of Scotland Plc with Sainsbury's Supermarkets occupying the ground floor retail unit.

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The Tritax Amazon Fund

In May 2012, The Tritax Amazon Fund acquired the newly constructed c.1 million sq ft purpose-built Big Box distribution warehouse.

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Tritax Investor Services

Our investors are at the heart of what we do. We understand that our long-term success is dependant not simply on the performance of our products, but also our ability to exceed expectations in terms of the service we provide to our investors.

We are committed to reviewing and enhancing the way in which we communicate to advisors and those invested with us, striving to communicate in a proactive, efficient and informative manner as well as ensuring all financial reporting and regulatory requirements are met.

If as an investor you require copies of your relevant investment documentation, copy tax certificates, commentary on fund performance and annual reports and accounts please email investorservices@tritax.co.uk or +44 (0)1234 720 188

Contact

Tritax Marketing and Sales Email: marketing@tritax.co.uk Tel: +44 (0)20 7290 1616 Standbrook House
4th Floor, 2-5 Old Bond Street
London W1S 4PD

Tritax Investor Services Email: investorservices@tritax.co.uk Tel: +44 (0)1234 720 188 The Lodge
Odell
Bedford MK43 7BB