Tritax Big Box signs contracts on new Howden distribution sites

Tritax Big Box said it had completed contracts to fund and develop two new distribution warehouses for builders merchant Howdens.

The properties have are pre-let to Howdens under two 30 year leases.

Contracts were originally exchanged, conditional on planning consent, in December 2016, but completion was delayed due to a prolonged challenge to the planning consent which has now been cleared, Tritax said.

The agreed investment price has been amended to £103.7m, to reflect a longer construction period due to the delayed planning consent and revised construction programme, representing a net initial yield of 5% (net of land acquisition costs) upon completion of the leases, it added.