November 10, 2021
Fiera Real Estate UK (“FRE UK”) is please to announce the acquisition of a 98,868 sq.ft facility in Loughborough for over £12million, reflecting a net initial yield of 4.5%.
The property was acquired by way of sale and leaseback and is let to Meggitt Aerospace Ltd, with a guarantee from Meggitt International Holdings Ltd for a term of 20 years subject to five yearly reviews geared to RPI with an annual collar and cap at 1% and 3% per annum compounded.
The site extends to approximately 6.1 acres providing a total of 98,868 sq ft across four main buildings situated within “the Golden Triangle’ and within one mile of junction 23 of the M1. The cities of Nottingham and Leicester, both dominant economic centres for the East Midlands region are 19 miles north and 13 miles south.
The site was purchased by the Fiera Real Estate Long Income Fund UK (“FRELIF”) and the asset provides FRELIF with excellent long term geared income, secured against an institutional grade tenant credit.
Rupert Sheldon, Head of CORE REIM and Fund Manager of FRELIF, commented, “The acquisition of this property aligns well with the investment parameters of FRELIF being a mission critical facility for the occupier located within the ‘Golden Triangle’ and offering 20 years of inflation-linked secure income. The acquisition helps extend FRELIF’s overweight position to the favoured industrial segment of the market and enhances all of the Fund’s key metrics of long, strong and progressive income. We remain acquisitive across our core mandates, with capital available to deploy into properties that share similar characteristics.”
Bray Fox Smith and IMPRO IM acted for Fiera real Estate, whilst Realest acted for Meggitt PLC.