SIG Trading Limited, Welton, Carlisle, CA5 7HH
Freehold Industrial Investment Opportunity with An Unexpired Lease Term Of 21 Years And 2-4% RPI Linked Rent Reviews
- Carlisle is the main administrative centre of Cumbria.
- Prominently situated on the B5299 approximately 10 miles (16 km) south of Carlisle City Centre.
- Several industrial units built in the late 1980s and a modern warehouse built in 2016 providing a total gross internal area of 248,351 sq ft (23,072.5 sq m) with a site area of approximately 15.26 acres.
- Let to SIG Trading Limited, who have been in occupation for over 30 years, for a term of 25 years from 1st June 2017, expiring on 31st May 2042.
- Five yearly rental increases to RPI collared at 2% per annum and capped at 4% per annum compounded.
- Current rent of £700,000 per annum which equates to only £2.82 per sq ft.
- The vendor is seeking offers in the region of £10,620,000 (Ten Million, Six Hundred and Twenty Thousand Pounds) subject to contract, for the benefit of their freehold interest. A purchase at this level would reflect a net initial yield of 6% rising to a minimum reversionary yield of 6.81% in June 2022 after allowing for purchaser’s costs of 6.8%, and a low capital value of £43 per sq ft.