Tritax Big Box buys Bristol warehouse for £25.2m

Tritax Big Box REIT has acquired a distribution centre in Bristol let by food wholesalers Brake Bros for £25.2m, reflecting a net initial yield of 5.2%.

The deal has been funded from equity proceeds, with senior debt finance expected to be introduced in the near term.

The property, which comprises a purpose-built cold store facility with a multi-temperature control system, is being acquired with a new unexpired lease term of around 30 years, subject to five yearly upward only rent reviews indexed to the Retail Price Index and capped at 5% per annum compound.

Tritax said the property is well positioned in a core South West location with excellent motorway connectivity.

In addition, it said the Bristol area is the key logistics location in the South West region, which has attracted a significant number of major occupiers, including Asda, GKN, CHEP, Next, Lidl, Royal Mail and Tesco.

Tritax partner Colin Godfrey said: “The Brake Bros distribution centre in Portbury, Bristol will provide long term income from an established covenant and further geographic diversification of our portfolio.

“The property will benefit from significant capital expenditure by the tenant, underlining Brake Bros' commitment to the asset. The 30 year lease commitment increases the company's portfolio weighted unexpired lease term to 16.7 years."

At 0826 GMT, Tritax shares were flat at 134.54p.