Tritax Big Box acquires Matalan distribution centre

Tritax Big Box has purchased Matalan Retail’s Northern Distribution Centre at Knowsley Business Park in Liverpool.

The property was bought for £42.38m, reflecting a net initial yield of 6.27% on the acquisition.

It will be funded out of equity proceeds, with senior debt finance expected to be introduced.

It comes with an unexpired lease term of approximately 21 years, with its next rent review due in October 2021.

Tritax partner Colin Godfrey said the the deal will gradually increase the company’s portfolio income yield.

“The property has already benefited from significant capital expenditure by the tenant and this, together with the 2014 extension, demonstrates Matalan's commitment to the asset.

“The North West is an important logistics location in which there are no Big Boxes over 500,000 sq ft available to let, and no known plans for speculative development of distribution assets in this size bracket.”