£47m deal for Tesco site
TESCO’S regional distribution centre in Goole has been bought for £47.1m by Tritax Big Box REIT.
The 700,000 sq ft development was built in 2007 for Tesco at Capitol Park, near to the to Port of Goole’s dedicated rail freight terminal, and the supermarket giant has a lease which runs until 2032.
Tritax’s real estate investment trust specialises in properties larger than 500,000 sq ft that are occupied on long leases to investment-grade tenants.
Last June it paid £60m for the Next distribution centre in Doncaster, while across Yorkshire it also owns Sainsbury’s regional distribution centre in North Yorkshire, Wolseley’s site in Ripon and The Range’s distribution centre in Thorne, South Yorkshire.
Tritax partner Colin Godfrey pointed to the undersupply of Big Box distribution assets available to let and the high and increasing demand, which he said “is already producing attractive rental growth”.
He added: “To date, the company has made 21 Big Box investments with a portfolio weighted average unexpired lease term of over 15 years and this latest purchase helps further support our target to achieve an annual dividend of 6 pence per share for 2015.”
The purchase of the Tesco centre, which has been funded out of equity proceeds, reflects a net initial yield of 5.67% on the asset purchase.
SG Commercial represented the Company and Knight Frank LLP represented the vendor.
