Tritax Big Box REIT (LSE: BBOX) has reached practical completion on a one million square foot logistics facility for Amazon at Symmetry Park in Kettering.
The facility, pre-let to Amazon on a 20-year lease, will generate annual rental income of £9.8 million for the FTSE 100 real estate investment trust.
Tritax Big Box said the development achieved a yield on cost at the upper end of its 6% to 8% guidance range, signalling strong returns from the project.
The building holds the distinction of being Amazon’s largest cross-dock warehouse in the United Kingdom, underlining the scale and strategic importance of the development.
Completion of the Amazon facility marks the delivery of all three committed buildings at the 136-acre Symmetry Park development in Kettering.
The logistics park now spans 1.6 million square feet of completed space in total, with facilities also occupied by Iron Mountain and Greggs.
Tritax Big Box noted that the Amazon development meets specified sustainability standards, with the project expected to support around 2,000 jobs in the surrounding region.
The commencement of Amazon’s 20-year lease with index-linked rent reviews provides Tritax Big Box with a long-term, stable income stream from one of the world’s largest companies.
The development reflects Tritax Big Box’s broader strategy of deploying its logistics land portfolio to build assets for major occupiers and grow its recurring rental income base.
Tritax Big Box REIT invests in and develops logistics warehouse properties across the UK, focusing on modern facilities leased to institutional occupiers under long-term agreements.
The group is also developing a pipeline of potential data centre projects, which could represent a significant additional growth avenue for the company.
The Symmetry Park completion reinforces the continued demand for large-scale, high-specification logistics infrastructure across the United Kingdom’s industrial property market.
