Franck-Steier Price has recently completed the acquisition of biomass storage facility and office in Widnes on behalf of LXi REIT plc.
The property comprises a 40 acre site which includes a newly developed HQ office building of 20,185 sq.ft, a warehouse of 172,500 sq.ft and 6.7 acres of external hardstanding for open storage. The tenant is developing a further 12.6 acres of additional hardstanding for open storage. The office will house Stobart’s Biomass Division alongside key personnel in Stobart Group. The warehouse and storage land will be used to store and process waste wood for use in Stobart’s Biomass Power Plant which is situated adjacent to the property.
The property is let to Stobart Group Ltd, for a term of 22.5 years from June 2018. The commencing rent is £1,512,000 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 £25,520,000 which reflects a net initial yield of 5.50%.