Ricardo Plc, Radford Semele, Leamington Spa, CV31 1FQ
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Atlas Real Estate, has recently advised Hortons’ Estates on the acquisition of a high specification manufacturing complex in Leamington Spa.
The property extends to 132,569 sq.ft on a site of 12.8 acres and comprises a manufacturing facility, a high specification warehouse and an office building with substantial parking. The tenant has invested significantly in the property and has recently undertaken a multi million pound capital programme to improve the ESG and production efficiencies onsite.
The property is let to Ricardo PLC for a further 11 years with five yearly reviews to RPI collared at 1% and capped at 4% per annum compounded. The current rent is £925,940 per annum, which reflects a low rent of £6.98 per sq.ft.
The property was acquired for £12,100,000 which reflected a net initial yield of 7.17% reverting to a minimum of 8.5% at the RPI review in May 2027. The price reflects a low capital value of £91.00 per sq.ft and is fully underpinned by alternative use value.
