Tritax Big Box moves big retailer into former Tesco site

Tritax Big Box REIT announced the successful completion of a new 15-year lease to the incumbent licensee, an unnamed “financially robust, world leading” retailer, on its distribution centre at Barlborough Links in Chesterfield on Thursday.

The FTSE 250 company said that the site, previously let to Tesco on a lease which was due to expire in March 2020, was a “well-located and well-configured” logistics facility, acquired by the company in March 2014 at an attractive yield.

In March of this year, Tritax successfully negotiated a surrender of the Tesco lease, without premium, to obtain vacant possession.

Almost simultaneously, Tritax said the new occupier entered into a 12-month licence agreement, to help enable it to undertake due diligence on the asset, with a view to negotiating and finalising a formal lease.

It said the “well-specified cross-docked facility” with 64 dock level loading doors had a gross internal area of 501,751 square feet, an eaves height of 15 metres, ancillary office space and a site density of 46%.

The asset reportedly benefitted from immediate access to the M1 at junction 30, providing good motorway and wider transport network connectivity.

Tritax said it was now undertaking a programme of works in conjunction with the customer's extensive fit out plans.

“We are delighted to have successfully completed this strategic asset management initiative for the company,” said Tritax partner Colin Godfrey.

“This new 15-year lease to a financially robust world leading retailer has increased and lengthened the income profile and enhanced the value of this well located asset.”

Godfrey said that upon acquisition in March 2014, the firm identified the potential demand that could be generated from alternative occupiers for the logistics facility given its location, building size and configuration, should Tesco have decided to vacate on expiry of the lease.

“Similarly, this new occupier recognised the attractions of this asset given its own requirements.

“We look forward to continuing to work closely with this key customer in order to help it meet its fulfilment requirements.”