Real estate investment trust acquires South Coast cold-store site in £44.2m deal

A London-based real estate investment trust has acquired a “rare asset” on the South Coast in a multi-million pound deal.

Tritax Big Box REIT plc has announced its acquisition of a temperature controlled distribution unit within the Nursling Industrial Estate in Southampton for £44.2m.

Covering 20 acres, the site includes a 325,000 sq ft building with cold-store capabilities, cross-docked building with 10 metre eaves and 53 dock levellers, as well as a parking and yard area.

The property is currently let to Tesco on a 25 year lease expiring in January 2021, and the firm believes the site provides a range of opportunities.

Colin Godfrey, CEO of fund management at Tritax Big Box, commented: “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.”

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