Tritax Big Box REIT has forward funded the development of a new distribution facility in Westwood Park, Manchester. The £28.6m investment represents a 6.42% yield.
The 399,500 sq ft facility has been fully prelet to wet wipe manufacturer Nice-Pak International for use as its new headquarters. It has signed a 25-year lease, without break options, subject to five-yearly, upward-only, RPI-linked rent reviews, providing a minimum of 2% pa rental growth (capped at 4% pa).
Construction of the main works is expected to commence this month, with practical completion targeted for spring 2016.
The land purchase will be funded by the company from equity proceeds, with senior debt finance expected to be introduced in the near term.
CBGA represented Nice-Pak; Savills and JLL represented Tritax.
Colin Godfrey, partner of Tritax, said: “This investment in Nice-Pak’s new HQ and distribution and production facility in Wigan adds further diversification to our portfolio tenant mix. The investment also increases the weighted average unexpired lease term and is accretive to our running yield.”
