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Tritax Big Box REIT : BBOX – new acquisition

Tritax Big Box REIT is buying William Morrison’s distribution centre in Sittingbourne, Kent for £97.8m. The 919,443 sq ft South East Regional Distribution Centre was developed in 2009. The distribution centre is being acquired from Wm Morrison Supermarkets plc subject to a new leaseback agreement for 25 years and with annual rent reviews indexed to RPI (subject to a 2% cap). The price equates to an initial yield of 5.2%.

Barclays bank are providing £53.8m of financing for the deal (a 55% loan to value) for a term of five years, with an option to extend up to a maximum of seven years. this brings the company’s blended interest rate on borrowings to 175bp over LIBOR and an aggregate loan to value ratio of 45%.

Tritax Big Box REIT says it is now substantially fully invested.

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