Tritax Big Box buys land, agrees funds for Oxfordshire distribution centre

Tritax Big Box Real Estate Investment Fund said it had bought land for a new distribution centre in Oxfordshire and also provided forward funding for the project.

Total investment in the new distribution centre in Signia Park, Didcot, which is pre-let to publishing house Hachette UK, whose parent company is French media conglomerate Lagardere, comes to £29.24m, reflecting a net initial yield of 5.82%.

The development, which is expected to be completed by July, will be Hachette's main national and a global distribution centre. Tritax said the property will receive “significant capital investment” from Hachette, including high levels of automation.

It will be leased to Hachette on a new 15-year lease, subject to five-yearly upward open market rent reviews and during the construction phase, Tritax will receive an income return equivalent to the agreed rent from the developer, Clowes Developments.

Colin Godfrey, partner at Tritax, said: "This key South East logistics acquisition provides the company with further tenant and business sector diversification whilst maintaining the weighted average unexpired lease term of the company's portfolio at over 15 years, and is earnings accretive. This takes our total portfolio to 38 assets."