13 December 2013
Tritax Big Box Reit has agreed to buy a 900,000 sq ft shed in Castle Donington. The newly formed reit has bought the Leicestershire shed from Aprirose Real Estate Investment, which forward funded the development by First Industrial and Clowes Developments for £73m in 2011.
It is let to Marks & Spencer for the next 23 years and the purchase price of £82.6m reflects a net initial yield of 5.2%. Completion of the deal is expected on Tuesday. The purchase will initially be funded out of equity proceeds, with senior debt finance expected to be introduced in the near term. It is located adjacent to a rail freight terminal.
Colin Godfrey, partner at Tritax, said:
“This is one of the tallest and most efficient distribution units in the UK. It was purpose-built for Marks & Spencer to meet the needs of their online and national store distribution requirements. It provides only the second facility of its kind for Marks & Spencer and Tritax Big Box Reit is delighted to become their new landlord.”