B8 Real Estate were approached by SPL International Limited who owner-occupied their manufacturing facility in Ellesmere Port and wanted to explore the possibility of a sale and leaseback to release equity to invest into the business
The company Directors were not based in the UK nor did they have a strong background in property. Having met with the client to discuss their aspirations, B8 Real Estate initially provided a detailed report on the North West industrial investment market, including advising the client on suitable lease terms, which would provide a strong return in the investment market whilst not unduly hindering the business going forward.
B8 Real Estate were instructed to market the property with a term certain of 10 years at a rent reflecting £4.95 per sq ft. It was vital that the investment was presented correctly to the market, not only to highlight the various attributes of the property, but also to ensure that investors were informed of the business plan behind the sale and leaseback process, providing comfort that the tenant would be committed to the property going forward.
Following and extensive marketing campaign the property was successfully sold to a Local Council for a price of £3.49M reflecting a net initial yield of 6.45%.
Client: Owner Occupier
Type: Industrial sale and leaseback
Value: £3.49m (6.45%)
Tenancy: Let to SPL International Ltd with 10 years term certain