A DISTRIBUTION centre near Ripon has been acquired by new owners following a £12.24 million deal.

Tritax Big Box REIT has purchased the centre in Melmerby, which is currently the home of Wolseley UK under an existing lease.

The deal has been funded out of equity proceeds, with senior debt finance expected to be introduced in the near term.

Melmerby is one of a number of regional distribution centres in the Wolseley UK network, which are supported by its national distribution centre and head office located in Leamington Spa.

Wolseley UK, part of a global distributor of heating and plumbing products, employs 220 staff at the site in Melmerby.

Tritax said the deal reflected a net initial yield of 6.73 per cent.

The property was constructed in 2001 and has ancillary offices and extensive parking over approximately 10.9 acres.

SG Commercial and WHY represented the Tritax while Cushman & Wakefield represented the vendor.

Tritax partner Colin Godfrey said: "We are delighted with our acquisition of the Wolseley regional distribution centre at Ripon, which is Wolseley's sole centre serving the north of England, Scotland and Northern Ireland with immediate motorway connectivity.

"It also provides tenant diversification to our current portfolio."

The distribution warehouse is being acquired with an unexpired lease term of approximately 12.5 years, which is subject to five yearly open market rent reviews.

The current passing rent is £838,500 per year, or £3.78 per square foot, with the next rent review due in September 2016.