Our longstanding client, Malco Holdings, instructed us to find a suitable industrial investment property that would generate a good return on investment.
Acting on behalf of our client, we acquired Foundry Park in Keighley, a new build industrial investment totalling 3,650 sq m on a 2.1 acre site, from Dalton Lane Properties. The investment was acquired for £4.1 million showing a net initial yield of 5.8%.
The property was let to Platinum Stairlifts on a 15-year unbroken lease at a rent of £253,500 pax (£6.45 per sq ft). The rent is subject to review every 5 years to open market rent or RPI indexing.
Our client secured a long-term income stream with guaranteed growth built in. Securing investments with unbroken longer term leases was proving more difficult in a highly competitive market place and the investment gave a good opportunity to strengthen the existing portfolio of investments held by our client.
The Tenant, Platinum Stairlifts secured a new facility retaining over 200 jobs within Keighley and because of their significant financial investment in the building, were prepared to commit to a long-term lease.
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