TATA Technologies Europe Ltd (TTEL), represented by FSP, has recently completed the development and sale and leaseback of the company’s new 63,000 sq.ft HQ office building on Tachbrook Park, Leamington Spa.
The property is let to TTEL on a 15 year lease from June 2017 at a commencing rent of £1,160,921 per annum (£18.50 per sq.ft). The lease is subject to 5 yearly upward only reviews to RPI collared at 1% and capped at 4% per annum.
The HQ houses Tata Technologies’ engineering support services as well as a research and development centre aimed at further developing the company’s capabilities and growth opportunities, especially in the automotive, aerospace and industrial machinery sectors. The Tata Group owns Jaguar Land Rover.
The development was funded by the Universities Superannuation Scheme (USS) for £19,083,000 which reflected a net initial yield of 5.70%, assuming purchaser’s costs of 6.75%.
USS were represented by Savills.