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Industrial
ADDRESS Culina Distribution Complex, Wolverhampton
| Location | Spring Lane, Wolverhampton | Investment Date | October 2005 |
| Transaction Type | Sale & leaseback | Project Cost | £12.25m |
| Asset Type | Warehouse | Disposal Date | Unrealised |
| Funding | Senior Debt | Sale Proceeds | Unrealised |
Transaction Summary / Opportunity
Description: A Freehold warehouse estate occupied by Baylis Logistics which was the subject of a sale and leaseback deal to Baylis.
Opportunity: Establish working relationship with Baylis for joint ventures to accommodate new warehousing space for Baylis.
Acquisition Method: Private Treaty
Value Added
- A team of consultants were appointed to agree a specification for a new warehouse within the estate.
- Obtained planning permission for a new 50,000 high bay warehouse.
- Constructed new warehouse within budget and within timetable of 6 months.
- Negotiated assignment of lease on entire estate to stronger covenant (Culina Logistics).
- Rental income increased by 23.29% since acquisition
- Rent review in 2010 should increase income by additional 17% due to low base rent on purchase.
