Tritax Big Box REIT has leased one million sq ft across four buildings at its Symmetry Park, Rugby development which it says is one of the largest UK letting transactions so far this year.
The FTSE 250 warehouse space developer said the new build facility will be state-of-the-art with 20% solar roof panels, an ‘A’ grade EPC rating and net-zero construction target.
Each of the four buildings will be let on a new 15-year lease with five-yearly open market rent reviews, with a yield on cost of between 6-8%
Delivery will be phased, with 321,000 sq ft due to complete in the second quarter of 2023 and the remaining 643,000 sq ft in late 2023.
Colin Godfrey, Tritax's chief executive, added: "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."
Tritax Big Box was recommended as a good inflation hedge last week by broker Liberum, predicting it will continue to offer “high single-digital total returns”.
Cash flows from such closed-ended real estate and infrastructure funds are either directly or indirectly tied to inflation, with rents rising as prices increase, it said.