The Carbon Factory, Swallow Road, Coventry, CV6 4AA
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LondonMetric, represented by Atlas Real Estate, has recently completed the acquisition of a high specification manufacturing facility located on the edge of Coventry city centre.
The property comprises a detached manufacturing facility extending to 159,326 sq.ft and is situated on the former Meggitt campus on Swallow Road. The immediate surrounding area is subject to a redevelopment masterplan for 550 new homes and 240,000 sq.ft of industrial accommodation.
The property is let to Meggitt Aerospace Ltd, guaranteed by Meggitt International Holdings Ltd, for an unexpired term of 24.54 years with 5 yearly index linked reviews to RPI collared at 2% and capped at 4% per annum compounded.
Meggitt’s operation of the site is integral to its wider business and the tenant is due to invest over £11m in the property over the next 6 months with further improvement works planned over the medium term.
The property was acquired from Square Bay, represented by Savills, for £9,400,000 which reflects a net initial yield of 4.64%, assuming purchaser’s costs of 6.69%.
