The Tritax Big Box real estate investment trust has purchased a distribution facility as the company looks to deliver a yield of 5.5 per cent.
Tritax is investing in the pre-let of a new distribution facility run by Screwfix Direct, representing an investment of £52.7m.
Colin Godfrey, partner of Tritax, said: “This investment which is accretive to our dividend is a good addition to our portfolio.”
This represents the eighth “forward funded” development and brings the total portfolio to 35 assets, he said.
The building, which is expected to be complete in October next year, will be leased to Screwfix on a new 10-year lease.
During the construction phase, the Tritax will receive an income return equivalent to the agreed rent from the developer.
