Tritax Big Box leases 1.0m square feet at Symmetry Park Rugby development
Real estate investment trust Tritax Big Box has leased one million square feet across four buildings at its Symmetry Park Rugby development site to an unnamed storage and information management services group.
Tritax Big Box stated the logistics facilities, two were from its speculative development programme, will be let on a new 15-year lease, with five-yearly open market rent reviews, and were collectively expected to deliver a yield on cost within its 6-8% guidance range.
The FTSE 250-listed firm said delivery of the buildings will be phased, with 321,000 square feet due to practically complete in the second quarter of 2023, while another 643,000 square feet of pre-let space will practically complete in late 2023.
Tritax added that the logistics facilities would support its new customer's growth ambitions by enabling it to create its first UK campus, capable of delivering a full range of services for clients.
Chief executive Colin Godfrey said: "Our successful letting of one million sq ft of prime logistics space will be one of the largest UK letting transactions completed so far this year and is further evidence of our strategy delivering growing rental income to our investors at an attractive yield on cost.
"Our development activity continues to gather momentum as we benefit from strong and diversified occupational demand. Our significant land portfolio allows us to carefully match customers' requirements in terms of building size, location, and configuration. We are delighted to be supporting a new customer's growth plans and welcome them and these state-of-the-art and highly sustainable buildings into our portfolio".
Reporting by Iain Gilbert at Sharecast.com