Funding for North East logistics facility
01 February 2019
Tritax Big Box REIT has completed contracts for the forward funded development of a new logistics fulfilment centre at Integra 61, near Durham, pre-let to a financially robust world leading retailer, which is thought to be Amazon.
The price represents a maximum commitment of £147.3 million, reflecting a net initial yield of 5.25%. The development will comprise a new prime, state-of-the art, purpose-built facility, with a gross internal floor area of c.1,992,061 sq. ft. inclusive of three structural mezzanine floors and a low site cover of c.32%.
The facility will be cross-docked with an eaves height of over 20 metres. The property will also benefit from significant capital investment by the occupier, including high levels of automation.
The site has access onto Junction 61 of the A1(M) and is close to Durham Tees Valley Airport, Newcastle International Airport and Durham railway station. The location is also near to the ports of Tees, Hartlepool, Sunderland and Tyne. The area benefits from an appropriately skilled and flexible labour supply.
Upon practical completion of the construction, targeted for summer 2020, the occupier will take up a new 20-year lease.