Tritax Big Box REIT plc Acquires an 872,000 Sq Ft Distribution Unit in Avonmouth for £90 Million
April 21, 2021 at 02:00 am EDT
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Tritax Big Box REIT plc announced it has acquired an 872,000 sq ft distribution unit in Avonmouth for £90 million, reflecting an attractive net initial yield of 5.1% for c.13 year income. The building is let to Accolade Wines Limited (the Customer), one of the wine companies by volume and the leading producer and distributor of wine in the United Kingdom and Australia. The building is a key component of the Customer's supply chain used for receiving then bottling wine for sale into the key UK and European markets. Constructed in 2008, with a ground floor area of 872,000 sq ft, the building has internal eaves heights of between 15 and 18 metres, 30 dock level loading doors and high-quality office accommodation. The Customer has installed bottling and box bag packaging lines and tanks, with the capacity to produce 1,200 bottles of wine every minute from this multi-award winning bottling facility. The building is the wine production, warehouse and distribution centre in Europe, distributing to all major UK supermarkets and European markets and providing approximately 20% of the UK's wine supply.
The asset offers 12.8 years of unexpired lease term in an attractive reversionary position, with five-yearly rent reviews providing a minimum of CPI uplifts, opportunities to add further value through a potential lease extension, and ESG related asset management initiatives aligned to the Customer's commitment to Net Zero Carbon.
Tritax Big Box REIT PLC is a United Kingdom-based real estate investment trust (REIT). The Company invests in logistics warehouse assets and controls the logistics-focused land platform in the United Kingdom. The Company focuses on well-located, modern logistics assets, let to institutional-grade tenants on long-term leases with upward-only rent reviews and geographic and tenant diversification throughout the United Kingdom. Its logistics land platform, which enables it to deliver sustainable buildings in the distribution hubs, aligned with its customersâ individual needs. It also owns, manages and develops assets from small to big boxes in prime locations in the distribution hubs close to key transport infrastructure, workforce and power. It provides building space in a range of sizes. The Company's portfolio consists of development and asset management assets, which includes Accolade Wines, Avonmouth; Amazon, Darlington; Amazon, Durham; Amazon, Haydock, and others.