Tritax scoops up Darlington logistics centre for £120.7m

Tritax Big Box REIT on Friday confirmed its intention to purchase and develop a logistics facility in Darlington, which will be pre-let to an unnamed retailer.

The AIM traded property investment trust said it expects to complete the £120.7m acquisition and development in early July but has not revealed how it intends to fund the purchase.

The targeted site is part of Link 66, an emerging logistics location situated on the eastern edge of Darlington at the junction of the A66 and A1150 which, according to Tritax, provides “excellent motorway connectivity”.

Furthermore, the location also brings the benefits of nearby cargo ports at Tees and Hartlepool, access by air via Durham Tees Valley Airport and by rail from Darlington railway station.

Working with property developer DB Symmetry, Tritax plans to extend the ground floor to 542,060 square feet, which brings the total floor space at the site to 1.5m square feet.

Tritax partner Colin Godfrey said: "We worked very closely with both the occupier and db symmetry in the delivery of this off-market pre-let development. Once operational the facility will be one of the most technologically advanced buildings of its kind in the UK. The investment diversifies the company's portfolio by geography and provides further exposure to a high calibre tenant on a long lease."

Following completion of construction, which is targeted for summer 2019, the property will be leased on a 20-year lease, subject to five yearly upward only rent reviews, the first of which is due in summer 2024.

Equivalent rent will be received from the developer during the construction phase, therefore providing 21 years of projected income.

As of 0921 BST, Tritax Big Box REIT’s shares were up 0.19% at 155.70p.