Paragon Flexible Packaging, Heapham Road Industrial Estate, Gainsborough
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Atlas Real Estate have recently completed the acquisition of a pre-let new build distribution unit in Gainsborough. The property was purchased by a private investor client.
The property comprises a new build distribution unit of 83,260 sqft including 4,680 sqft amenity block and 4,047 sqft first floor offices. There is the potential to expand by a further 15,000 sqft at the rear of the site in the future. The overall site area is 4.8 acres.
On PC the property was let to Paragone Flexible Packaging Ltd with a guarantee from both Paragon Labels Ltd and Paragon Print & Packaging. The lease is a 20 year FRI term with 5 yearly compounded 2.5% annual growth. The initial rent is £382,996 per annum – £4.60 per sqft.
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The property was purchased for £4,525,000 which represents a net initial yield of 8%, assuming full costs of purchase of 5.8%.
