02 October 2017
Reporter: Theo Andrew

Tritax acquires a big box for £48.8 million

Tritax Big Box REIT has acquired a Royal Mail warehouse in Daventry from LondonMetric, for £48.8 million.

The deal reflects a net initial yield (NIY) of 5 percent.

The 272,000-square foot warehouse was purchased for £36 million by LondonMetric in 2014, reflecting a NIY of 6.7 percent for the FTSE 250 REIT.

The property generates an annual rental income of £2.6 million and has an unexpected lease term of six years.

Andrew Jones, chief executive of LondonMetric, said: “This asset has performed strongly, delivering an ungeared initial rate of return of 15 percent per annum. We will recycle the proceeds into our pipeline of investment and development opportunities, particularly in urban and regional logistics, where we continue to see value and good prospects for further rental growth.”

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