The Co-op will remain as tenant of its Thurrock distribution centre after a new landlord takes over.
Thurrock is one of the Co-op’s six strategic UK distribution hubs and the only one in the South East of England.
Tritax Big Box REIT (real estate investment trust) has bought the 15-acre site close to J31 of the M25 for £56.5m.
On completion of the deal, which is expected next week, Tritax will also become landlord of the adjoining four-acre lorry parking facility.
The warehouse and offices have a gross area of 322,684 sq ft covering half the site, which also has extensive decked parking. The site and warehouse have been heavily invested in by the Co-op since construction in 2005.
The whole facility is being acquired with an unexpired lease of around nine-and-a-half years and Tritax said the Co-op’s tenancy would be unaffected by the change of landlord.
The distribution warehouse is subject to five-yearly upward rent reviews of 2% pa, or open market rent, whichever is greatest. The lorry parking facility is let on five-yearly fixed rent increases of 2.5% pa. The next review for the warehouse is December 2020 and for the lorry park in May 2018.
Tritax invests purely in so-called “Big Box” logistics assets on behalf of its shareholders.
Partner Colin Godfrey said the purchase of Thurrock further diversified its portfolio with an established occupant and a core distribution location.
“Prime quality Big Box logistics warehouses are in high demand from occupiers requiring close access to the densely populated London conurbations, but there are no units of this size or greater currently available to let around the M25 ring.”
The Grocer understands that the facility has been sold by the UK-based international investment business, Henderson Global Investors.
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