BCA, Geddington Road, Corby, NN18 8EZ
FSP has recently completed the sale of a 121 acre car storage facility in Corby, let to BCA, on behalf of LXI REIT.
The property is located adjacent to Midlands Logistics Park on Geddington Road Corby. The property comprises a 121 acre car storage facility with associated car storage and vehicle preparation units on site.
FSP acquired the property for LXI REIT in 2018 and subsequently re-geared the lease in 2020 to extend the term from 16 years unexpired to a new 25 year lease.
The property is let to BCA Fleet Solutions Ltd, guaranteed by BCA Central Ltd, for a term of 25 years from June 2020. The lease is held on full repairing and insuring terms subject to five yearly reviews to RPI collared at 1.5% and capped at 2.5% per annum compounded. The current rent is £3,241,000 per annum.
The property was sold for £67,650,000 which reflects a net initial yield of 4.49%.
The purchaser was DTZ Investors, represented by M1 Agency.
Ben Blackwall, Director at FSP comments ‘This sale was an exceptional result for the client following on from executing the re-gear with BCA earlier in the year. The sale highlights the institutional demand for long let, well located real estate which in this case was under pinned by industrial land values.’