Keighley Industrial Investment

Challenge

Our longstanding client, Malco Holdings, instructed us to find a suitable industrial investment property that would generate a good return on investment.

Solution

Acting on behalf of our client, we acquired Foundry Park in Keighley, a new build industrial investment totalling 3,650 sq m on a 2.1 acre site, from Dalton Lane Properties. The investment was acquired for £4.1 million showing a net initial yield of 5.8%.

The property was let to Platinum Stairlifts on a 15-year unbroken lease at a rent of £253,500 pax (£6.45 per sq ft). The rent is subject to review every 5 years to open market rent or RPI indexing.

Results

Our client secured a long-term income stream with guaranteed growth built in. Securing investments with unbroken longer term leases was proving more difficult in a highly competitive market place and the investment gave a good opportunity to strengthen the existing portfolio of investments held by our client.

The Tenant, Platinum Stairlifts secured a new facility retaining over 200 jobs within Keighley and because of their significant financial investment in the building, were prepared to commit to a long-term lease.

“Understanding the true value of your investments is critical in decision making. Valuing over £2bn of assets last year, our experienced and knowledgeable team are at the top of their profession.”

Stephen Hawkins
Partner