Tritax Big Box REIT has secured a senior debt financing agreement for a southeast London distribution warehouse which is pre-let in its entirety to a subsidiary of Ocado.
The £50.86 million facility has been agreed with Landesbank Hessen-Thüringen Girozentrale (Helaba), reflecting a loan to value ratio of around 50 per cent.
The facility has a five year term with the option of extending it by another year prior to the second anniversary of the agreement, subject to consent from the lender.
In order to match the terms of the forward funding contract, the facility provides a twelve month loan to facilitate the construction period for the distribution centre at Crossdox, Bronze Age Way, Erith.
This will automatically be converted into an investment loan for the remainder of the term at the point of practical completion, which is expected to be in the summer of 2016.
Inclusive of this loan, the blended margin payable across Tritax’s financings following the completion of the scheme will be around 1.70 per cent above three month LIBOR.
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