Tritax Big Box REIT has forward funded a logistics facility and headquarters at Bericote Properties’ Four Ashes scheme in Wolverhampton in the West Midlands to the tune of £56.3 million, reflecting a net initial yield of 5.14 per cent (net of land acquisition costs).
The property totalling 543,692 sq ft has been pre-let on a 25-year lease to a global designer and manufacturer of components and assemblies, conditional upon detailed planning consent. The lease will be subject to five yearly upward only rent reviews.
The site is strategically located close to Junction 12 of the M6 motorway, providing good access to Birmingham and Nottingham. The new facility comes with expansion land to accommodate up to a further 101,139 sq ft. The property will include modern specifications, with a clear height of 15 and 12 metres and a low site cover of approximately 43 per cent.
The development is being undertaken by Bericote Properties. Construction of the main works is expected to commence during September 2016 with practical completion anticipated for July 2017.
Jones Lang LaSalle represented Tritax and Dowley Turner Real Estate advised the vendor.