Tesco disposes of Â£22m warehouse
Tesco is to sell a major distribution warehouse for £22.45m.
Tritax Big Box REIT has exchanged contracts for the warehouse on the 200-acre Stakehill industrial estate, Middleton, in an off-market purchase. The deal reflects a net initial yield of 8.25 per cent.
The 301,479 sq ft property was built in 1988 and is leased to Tesco for an unexpired term of about nine years, with two further rent reviews in December 2017 and 2022.
It is currently unoccupied.
Colin Godfrey, partner of Tritax, said: "We are pleased to announce our third acquisition in the North West, a region which has witnessed the highest levels of activity for industrial take up, accounting for over 25 per cent of all industrial sector real estate transactions in the UK in 2014 so far.
"We see potential significant value add opportunities through asset management of this distribution warehouse."
SG Commercial represented the company and DTRE represented the vendor.