Tritax Big Box has sold the unit to an investment company with a portfolio focused on urban warehouses
A real estate investment company has completed a deal to sell a huge warehouse in Derbyshire occupied by Amazon for almost £60 million.
Tritax Big Box has sold the 500,000 sq ft unit at Chesterfield to Warehouse REIT, an investment company with a portfolio and investment strategy focused on urban warehouses.
Tritax bought the building six years ago when it had six years of its lease remaining to Tesco.
However, in 2018 it agreed an early surrender of the lease to Tesco and secured a new 15-year lease to Amazon, significantly enhancing the value of the asset. Tritax has now sold the building to Warehouse REIT for £57.3 million.
Colin Godfrey, chief executive of fund management at Tritax Big Box, said: The sale of our Chesterfield asset for £57.3 million demonstrates the successful implementation of our strategy and is a great result for our shareholders.
Through our active management, and working closely with our customers, we were able to support them while significantly enhancing the value of the Chesterfield asset, securing a high-quality tenant on attractive lease terms, he said.
Godfrey said, there is strong investment demand in the market for high-calibre logistics assets of this nature, which we are able to take advantage of through carefully selected disposals, redeploying the proceeds into attractive opportunities including our development pipeline where we expect to deliver a six per cent to eight per cent yield on cost.
He said, with investment demand in the market remaining strong, and attractive opportunities for us to deploy capital, we expect to complete a number of further disposals during the remainder of this financial year.
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