Tritax Big Box REIT plc (Tritax Big Box or the Company) announces that is has successfully leased one million sq ft across four buildings at its Symmetry Park Rugby development site to a global leader in storage and information management services (the Customer).
Extensive land portfolio supports the long-term growth ambitions of our customers
These logistics facilities will support our new Customer's growth ambitions by enabling it to create its first UK campus, capable of delivering a full range of services for its clients. The lettings also support the development programme at Tritax Big Box's Rugby site, which benefits from planning consent to deliver approximately 1.9 million sq ft of logistics space and access to key transport infrastructure.
Enhancing our portfolio with high-quality and sustainable assets
The buildings will be state of the art and, in line with our leading and integrated approach to ESG, will:
- Be constructed to BREEAM Very Good rating;
- Target an EPC rating of A;
- Achieve net zero carbon in construction, and
- Initially provide 20% solar PV roof covering with potential to increase.
Delivering attractive returns to investors
The Customer is leasing four buildings, of which two are from our speculative development programme, and has entered into a further two pre-lets on buildings which will be constructed on a built-to-suit basis, noting that:
- Each of the four buildings will be let on a new 15 year lease with five yearly open market rent reviews;
- Collectively the four buildings are expected to deliver a yield on cost within our 6-8% guidance range;
- Delivery of the buildings will be phased, with:
o 321,000 sq ft due to practically complete in Q2 2023 (forming part of our current speculative development programme where construction commenced in May 2022)
o 643,000 sq ft of pre-let space expected to practically complete in late 2023.
Colin Godfrey, CEO, commented:
"Our successful letting of one million sq ft of prime logistics space will be one of the largest UK letting transactions completed so far this year and is further evidence of our strategy delivering growing rental income to our investors at an attractive yield on cost. Our development activity continues to gather momentum as we benefit from strong and diversified occupational demand. Our significant land portfolio allows us to carefully match customers' requirements in terms of building size, location and configuration. We are delighted to be supporting a new customer's growth plans and welcome them and these state of the art and highly sustainable buildings into our portfolio".
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Tritax Big Box REIT plc (Tritax Big Box or the Company) is the largest listed investor in high-quality logistics warehouse assets and controls the largest logistics-focused land platform in the UK. Tritax Big Box is committed to delivering attractive and sustainable returns for shareholders by investing in and actively managing existing built investments and land suitable for logistics development. The Company focuses on well-located, modern logistics assets, typically let to institutional-grade tenants on long-term leases with upward-only rent reviews and geographic and tenant diversification throughout the UK. The Company seeks to exploit the significant opportunity provided by the imbalance between strong occupational demand and constrained supply of modern logistics real estate in the UK.
The Company is a real estate investment trust to which Part 12 of the UK Corporation Tax Act 2010 applies, is listed on the premium segment of the Official List of the UK Financial Conduct Authority (Ticker: BBOX) and is a constituent of the FTSE 250, FTSE EPRA/NAREIT and MSCI indices.
The Company's LEI is: 213800L6X88MIYPVR714
Further information on Tritax Big Box REIT is available at www.tritaxbigbox.co.uk