Tritax Big Box signs deal to buy distribution centre for £77m

Real estate investment trust Tritax Big Box said it had exchanged contracts to acquire a national distribution centre let to DSG Retail Ltd, part of Dixons Carphone for £77.3m, reflecting a net initial yield of 5.86% on the corporate acquisition.

Tritax said the purchase is being funded from equity proceeds, with senior debt finance expected to be introduced in the near term. Completion is expected to take place later on Tuesday.

The property is one of two national DSG distribution centres located on Newlink Business Park in Newark, Nottinghamshire and forms part of DSG's principal hub for direct store replenishment, home deliveries and returns.

The property has an unexpired lease term of approximately 20 years and benefits from 3% per annum fixed rental increases received every five years, Tritax said.