The major logistics-focused real estate investment trust, Tritax Big Box PLC, has today announced a £44.2 million purchase of a prime distribution unit in the South Coast.
The 325,000 sq ft building in Southampton’s Nursling Industrial Estate features extensive cold-store capabilities across the 20-acre site and is a pre-eminent location for logistics on the South Coast.
The building is currently let to Tesco on a 25-year lease which is due to expire in January 2021. However, Southampton is an area that has very low vacancy rates due to high demand from a range of occupiers attracted by its strategic coastal location, making importing from mainland Europe more cost-effective.
Commenting on the purchase, Colin Godfrey, CEO, Fund Management, said: “This is a rare asset acquired off-market in a prime South Coast location next to the M27 motorway and close to the Port of Southampton. Benefitting from a strong existing tenant and a robust underlying occupational market, this building presents us with several attractive asset management opportunities which we expect will drive income and capital value growth. While the investment market for logistics assets continues to strengthen, there remain select attractive acquisition opportunities where significant value can be added through asset management.”