Real estate management firm Tritax Big Box confirmed it will acquire Tesco’s regional distribution centre at Capitol Park in Goole for £47m yesterday.
The deal, which has been funded through equity proceeds, will see Tritax take over the site which has a 17.5 year unexpired lease and is expected to yield a 5.67 per cent return on the asset purchase. Rents are subject to five-year-term upward-only open market reviews, with the next due in two years time.
Tritax partner Colin Godfrey said: “At over 700,000 square feet, the Tesco Goole regional distribution centre distributes general merchandise across northern England. The area also benefits from an undersupply of Big Box distribution assets available to let and, when coupled with the high and increasing demand from prospective occupiers, is already producing attractive rental growth.”
Godfrey said Tritax had made 21 Big Box investments with an average unexpired lease term of over 15 years across the portfolio. He added that the latest purchase helped to support the company’s target of achieving an annual dividend of 6p per share for 2015.
Completion of the deal will take place by 5 June. SG Commercial is representing Tritax with Knight Frank representing the vendor.