A £120m deal has been agreed for a 1.5 million sq ft logistics fulfilment centre in Darlington which its owners believe will be one of the most advanced buildings of its type in the UK.
Tritax Big Box REIT has exchanged contracts for the forward-funded development which will be based at Link 66 in Darlington, an emerging logistics location situated on the eastern edge of the town at the junction of the A66 and A1150.
The location also benefits from close proximity to the cargo ports at Tees and Hartlepool, access by air via Durham Tees Valley Airport and by rail from Darlington railway station.
Incorporating a cross-docked facility with 360-degree circulation, the property will be constructed to a high specification. #
The scheme will benefit from “significant capital investment” by the unnamed occupier, with completion of the deal expected in early July when the land will be acquired and the development will commence.
Construction work is set to be finalised in the summer of 2019, when the property will be leased on a 20-year deal.
From completion of the land purchase and during the construction phase, Tritax will receive an income return equivalent to the agreed rent from the developer, thereby providing 21 years of projected income.
The development is being undertaken by DB Symmetry.
Colin Godfrey, partner at Tritax, said: “We worked very closely with both the occupier and DB Symmetry in the delivery of this off-market pre-let development. Once operational the facility will be one of the most technologically advanced buildings of its kind in the UK.
“The investment diversifies the company’s portfolio by geography and provides further exposure to a high calibre tenant on a long lease.”
DTRE represented Tritax and CBRE represented the vendor.