Tritax Big Box REIT has acquired a Morrisons-let distribution facility at Birch Coppice Business Park, Birmingham for £92.33m.
The purchase price of the facility, which is operated by Ocado and serves both Ocado and Morrisons’ online retail business, reflects a yield of 5.25%.
The 700,000 sq ft facility was purpose-built in 2012 for Ocado and comprises one of its four principal temperature controlled customer fulfilment centres.
A significant capital investment has been spent on incorporating a high level of automation within the building. The investment has been acquired with an unexpired lease term of around 21 years with no tenant break and subject to annual upward only rent reviews indexed to the Consumer Price Index and capped at 3.5%.
Colin Godfrey, partner of Tritax, said: “The acquisition of this Morrisons distribution facility, operated by Ocado, builds upon our strong working relationship with both retailers. The property will provide long term income in one of the most sought after locations within the ‘Golden Triangle’ providing access to 85% of the UK within 4.5 hours.
“Our portfolio now comprises 38 UK Big Box logistics assets.”
Colliers International introduced the opportunity to Tritax Big box REIT.
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