Tritax Big Box signs deal on Durham logistics centre

Tritax Big Box REIT said it had completed contracts for the forward funded development of a new logistics centre near Durham to an unnamed retailer for £147.3m.

The price reflected a net initial yield of 5.25%, Tritax said.

The development will comprise a new purpose-built facility, with a gross internal floor area of around 2m sq. ft. inclusive of three structural mezzanine floors and a low site cover of c.32%.

Practical construction completion was targeted for summer 2020 with the occupier taking up a new 20-year lease, subject to five yearly upward only rent reviews indexed to the consumer prices index collared at 1% a year and capped at 3% per annum.