Heathrow development funding for UK Long Leased Property Fund
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Atlas Real Estate Ltd has recently completed the acquisition a prime distribution development in Heathrow for the UK Long Leased Property Fund.
The development is to comprise a high specification parcel distribution depot of 41,550 sq.ft which will be completed in June 2014.
As part of the development agreement Kier will provide an effective developer’s lease during the construction period.
The property is to be let to Geopost UK Ltd on a 20 year lease from practical completion at a commencing rent of £596,243 per annum. The lease will be held on full repairing and insuring terms subject to 5 yearly upward only rent reviews to open market value multiplied by 124.8% to reflect the low site cover and specification of the unit.
The purchase price was £9,400,000 which reflects a net initial yield of 6.00%, assuming costs of 5.80%.
DTRE represented the vendor Kier Property Developments Ltd.
