Franck-Steier Price has recently completed the acquisition of biomass storage facility in Rotherham on behalf of LXi REIT plc.
The property comprises a six acre site which as been recently converted to a waste wood storage facility servicing the Templeborough Biomass Plant in Rotherham.
The property is let to Stobart Biomass Products Ltd, guaranteed by Stobart Group Ltd, for a term of 20 years from February 2018. The commencing rent is £225,000 per annum reviewed 5 yearly to RPI collared at 1.5% and capped at 4% per annum compounded.
The property was acquired from Stobart Group, represented by Roebuck Asset Management, for £3,400,000 which reflects a net initial yield of 6.12%.