Pacific Industrial & Logistics REIT (PILR) has announced that on 19 January 2017 it completed the purchase of a site at Holmewood Industrial Park, Chesterfield, from Tangerine Confectionary Limited for a total consideration of £4.8m. PILR says that the purchase has been financed using proceeds from its recent placing (which raised £11.1m) but that this will be refinanced under terms agreed with PILR’s debt facility provider at a loan-to-value of 45%.
A new short-term lease to Tangerine Confectionery Limited has been entered into following purchase, expiring 31st May 2017 at a rent of £42,000 per month. PILR says that there is a rent guarantee in place, if the building is not then re-let, with Tangerine Confectionary Limited until 31st December 2017. PILR’s management says that they are confident in the opportunity to re-let the site which they describe as being is in a well established location with access to J29 of the M1.
Pacific Industrial and Logistics REIT invests in UK based (despite the name!) industrial and logistics properties (typically single let). Investments will be in smaller industrial and logistics properties (with an average lot value across a portfolio at acquisition of less than £10m (increased by RPI from Admission)) across the UK.
Pacific Industrial & Logistics REIT acquires Tangerine Confectionary’s Chesterfield site for £4.8m : PILR