Tritax Big Box invests £89m in new Midlands warehouse
Logistics warehouse specialist Tritax Big Box on Friday said it was investing £89.3m in a new distribution centre at Midlands Logistics Park (MLP) in Corby.
The property is pre-let to BSH Home Appliances Limited, part of the Bosch Group. The development represents a net initial yield of 5.2% after acquisition costs.
Construction completion is targeted for Autumn 2019. The property will be let to BSH on a new 10-year lease, subject to five yearly RPI-indexed upward-only rent reviews indexed to the Retail Price Index , Tritax said.
It added that it would receive an income return equivalent to rent from completion of the land purchase and during construction.
MLP is capable of potentially accommodating approximately 5m sq ft. of logistics space and benefits from a 500-metre rail siding and yard for a potential future connection onto the rail freight network.
“This potential bi-modal connection for MLP would provide enhanced connectivity for the site to the UK's ports and cities. Corby has attracted a number of major occupiers including Eddie Stobart, Wincanton, Matalan and Morrisons,” Tritax said.