The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased to announce the Company has
exchanged contracts, conditional on receiving full planning consent, to provide forward funding for the
development of a new National Distribution Centre at Midlands Logistics Park (“MLP”), Corby. The
property is pre-let to BSH Home Appliances Limited (“BSH”), part of the Bosch Group. The Bosch Group
is the largest manufacturer of home appliances in Europe and one of the leading companies in the
sector worldwide with high quality brands that include Bosch, Gaggenau, Neff and Siemens. The
development represents an investment of £89.3 million, reflecting a net initial yield of 5.2% (net of
acquisition costs to the Company).
The property will comprise a cross-docked facility with 360-degree circulation, a minimum eaves height
of 15 metres, together with extensive parking and a site cover of approximately 50%. The new prime
facility will be purpose-built to a high specification with a gross internal area of c. 945,375 sq ft; it will
become BSH’s largest UK distribution centre.
The site, situated adjacent to the pre-let Eddie Stobart Limited property owned by the Company, forms
part of MLP, a new logistics park to the south of Corby. The property benefits from direct access onto
the A43 dual carriageway, which has recently been upgraded, thereby providing improved access to
the M1 southbound, the M6 and A1(M) via the A14 dual carriageway. MLP is capable of potentially
accommodating approximately 5 million sq ft. of logistics space and benefits from a 500-metre rail siding
and yard for a potential future connection onto the rail freight network. This potential bi-modal
connection for MLP would provide enhanced connectivity for the site to the UK’s ports and cities. Corby
has attracted a number of major occupiers including Eddie Stobart, Wincanton, Matalan and Morrisons.
Upon practical completion of the construction, targeted for Autumn 2019, the property will be let to BSH
on a new 10-year lease, subject to five yearly upward only rent reviews indexed to the Retail Price
Index, subject to a cap and collar. From completion of the land purchase and during the construction
phase, the Company will receive an income return equivalent to the rent.
Colin Godfrey, Partner of Tritax, commented:
"We are very pleased to be investing in this new distribution centre for a new customer, BSH, whose
home appliance products include the Bosch, Gaggenau, Neff and Siemens brands. This transaction
also provides the Company with further exposure to an emerging well-connected East Midlands logistics
park south of Corby. This off-market investment adds to our portfolio's core foundation income and
offers good potential for rental growth."