Tritax Big Box REIT reported its one million square foot lease agreement across four buildings at its Symmetry Park Rugby development site to an unnamed global leader in storage and information management services today.
The trust commented that the logistic facilities would support its new client’s growth ambitions by enabling it to create its first UK campus to deliver a complete slate of services for its customers.
Tritax Big Box highlighted attractive returns to investors, with its client leasing four buildings, two of which are from the company’s speculative development programme.
The client also reportedly entered into an additional two pre-lets on buildings which are set to be constructed on a built-to-suit basis.
Tritax Big Box noted that each of the four buildings would be on a new 15 year lease with five yearly open market rent reviews, with the four buildings expected to deliver a yield on cost within the group’s 6% to 8% guidance range.
The firm mentioned that the delivery of the buildings would be phased, with 321,000 square feet due to practically complete in Q2 2023, and 643,000 square feet of pre-let space scheduled to practically complete in late FY 2023.
“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,” said Tritax Big Box REIT CEO Colin Godfrey.
“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.”