The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased to announce the successful completion of a new 15-year lease to the incumbent licensee, a financially robust world leading retailer, on the Company’s distribution centre at Barlborough Links, Chesterfield.
Previously let to Tesco Stores Limited (“Tesco”), on a lease which was due to expire in March 2020, this well located and well configured logistics facility was acquired by the Company in March 2014 at an attractive yield.
In March 2018, the Company successfully negotiated a surrender of the Tesco lease, without premium, to obtain vacant possession. Almost simultaneously, this world leading occupier entered into a 12-month licence agreement, to help enable it to undertake due diligence on the asset, with a view to negotiating and finalising a formal lease.
This well specified cross-docked facility with 64 dock level loading doors, has a gross internal area of 501,751 sq ft, an eaves height of 15 metres, ancillary office space and a site density of 46%. It benefits from immediate access to the M1 at Junction 30, providing excellent motorway and wider transport network connectivity.
The Company is undertaking a programme of works in conjunction with the customer’s extensive fit out plans.
Colin Godfrey, Partner of Tritax, commented:
"We are delighted to have successfully completed this strategic asset management initiative for the Company. This new 15-year lease to a financially robust world leading retailer has increased and lengthened the income profile and enhanced the value of this well located asset.
Upon acquisition in March 2014, we identified the potential demand that could be generated from alternative occupiers for this logistics facility given its location, building size and configuration, should Tesco decide to vacate on expiry of the lease. Similarly, this new occupier recognised the attractions of this asset given its own requirements.
We look forward to continuing to work closely with this key customer in order to help it meet its fulfilment requirements."