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Deal struck on Howden’s warehouse development

Alexandra LeonardsBy Alexandra Leonards19th January 20182 Mins Read
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Tritax Big Box REIT has completed contracts for the site acquisition and forward funding for the development of two warehouse at Warth Park, Raunds for Howdens Joinery.

The two distribution facilities, which will stand adjacent to one another and to the Company’s existing Howdens facility, are under separate freehold titles and will be completed to a high specification with target gross internal floor areas of 657,000 sq ft and 300,000 sq ft, respectively.

Both buildings will have an eaves height of 15 metres and a combined site cover of approximately 53 per cent. Completion of the construction of the two facilities is due to take approximately 21 months with completion of the two new leases expected by winter 2019.

Contracts were originally exchanged, conditional on planning consent, in December 2016. Completion was delayed due to a prolonged challenge to the planning consent which has now been cleared. The agreed investment price has been amended to £103.7 million, to reflect a longer construction period due to the delayed planning consent and revised construction programme.

Colin Godfrey, Partner of Tritax, said: “Following the successful completion of the first Howdens building, which the Company agreed to forward fund in September 2015, we are delighted to be investing on the second phase of Howdens’ two new distribution centres. Once completed, these three high specification facilities totalling 1.6 million sq ft will provide Howdens with a ‘centre of excellence’ for its national supply chain operations.”

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Alexandra Leonards

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