A MAJOR distribution facility will be built for TK Maxx near Wakefield after investors committed £59m to the scheme.
Tritax Big Box REIT, which specialises in large industrial units, is to develop the 635,000 sq ft facility in Knottingley, at the junction of the M62 and A1.
TK Maxx has signed a 20-year lease for the property, which will have three mezzanine floors that will create an additional 765, 000 sq ft of useable space.
It is being developed by Caddick and construction is scheduled to be completed in January 2017.
“The property occupies a key logistics location that is achieving strong rental growth,” said Colin Godfrey, partner of Tritax.
The deal follows last month’s announcement by John Lewis that it had signed a 20-year lease for a distribution hub at Logic Leeds and is the latest to reinforce the region’s reputation as an important area for the logistics sector.
The investment reflects a yield of 5.32%, net of land acquisition costs.
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