Royal Mail hub bought by Tritax for £32.7m

Tritax Big Box REIT has bought a Royal Mail distribution centre in the West Midlands for £32.7m, in a deal reflecting a net initial yield of 6.1%.

The 381,091 sq ft facility is located in Atherstone and has an unexpired lease term of 10 years, subject to upward-only five-yearly rent reviews. The next review is due in September 2021.

Tritax said the purchase was made with equity.

Colin Godfrey, partner at Tritax, said the deal offered “an attractive yield which is accretive to our portfolio income yield and which offers the potential for strong rental growth in 2021 as well as opportunities for future value enhancement”. 

He added: “The facility, which is situated in an established core logistics location, has already recently benefited from significant capital expenditure with further investment committed to by the tenant.”

DTRE represented Tritax.

Related Articles

Have your say

Sign in to make a comment on this story.

Sign In

Text size

Desktop Site | Mobile Site