Tritax Big Box REIT has announced that it has exchanged contracts to acquire the land and provide forward funding for the development of a Northamptonshire distribution warehouse.
The £67 million facility, at Warth Park in Raunds, has been pre-let in its entirety to Howdon Joinery Group, on a break-free 30 year lease subject to five yearly upward only rent reviews.
The building will comprise approximately 655,000 sq ft of warehouse space and include modern specifications with cross docking and 15 metre high eaves.
The development, which is expected to commence this month, will be carried out by industrial and distribution specialist Roxhill. Completion is anticipated in June 2016.
Tritax will fund the land purchase and the scheme from equity proceeds, with senior debt finance expected to be introduced in the near term.
Commenting on the announcement Colin Godfrey, Partner of Tritax, said: “We are excited to be investing in a new national distribution centre for Howdens, which provides further tenant and geographic diversification.
“The investment also increases the weighted average unexpired lease term and is accretive to our running yield.
“We look forward to working with Roxhill to deliver a best in class warehouse facility for Howdens at this key logistics location, which has already attracted many high profile occupiers.”
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