August 15, 2022
Fiera Real Estate (“FRE UK”) is pleased to announce that it has secured a letting at its scheme in Belvedere, South East London to Westminster Waste on a 20-year unbroken lease term at a rent of £1.2m per annum.
The asset, occupying a prime industrial location, comprises 85,000 sq.ft of production, warehousing and office space and is held in the Fiera Real Estate Long Income Fund UK (“FRELIF”). It has been let following a decision to defer redevelopment of the site in response to the changing market dynamic.
The new 20-year lease term benefits from annually compounded five yearly CPI rent reviews collared and capped at 2% and 5% respectively ensuring guaranteed income progression and strong liability matching alignment in keeping with wider fund objectives. The transaction takes occupation across the fund up to 100% and adds a further 10% to the net distributable income for FRELIF at a time when investors more generally are looking to fall back on secure, progressive income streams as capital growth across the wider market turns negative.
Importantly Westminster Waste has a sustainability agenda aligned to the Fund’s own and has committed to not using fossil fuel powered energy at the site and achieving the Fund’s Net-Zero-Carbon target of 2035.
Anne-Marie Keane, Director at FRE UK, commented “This letting is an endorsement of the prime location of this asset and is a perfect fit for our strategy of further enhancing the fund’s exposure to long, secure and progressive income streams. By offering 20 years of inflation-linked income within a strong ESG wrapper, FRELIF is able to retain an important asset for the fund in a high growth market.”
Dominic Moule, Managing Director of Westminster Waste, commented “The business is pleased to have secured this prime site in Belvedere which will position us for growth and to deliver a new age of facility for Westminster Waste. It was a pleasure working with Fiera and their team to get the deal over the line.”