LXi buys Motorpoint car showroom – The Board of LXi REIT has announced that the company has acquired the Motorpoint car showroom in Burnley, Lancashire. The purchase price for the Property is GBP5.7 million, reflecting a net initial yield of 6.5% (net of acquisition costs), which is expected to rise to over 7.0% following next year’s five yearly RPI-linked rent review.
The Property is fully let to Motorpoint Limited, the principal trading company of Motorpoint plc, a London Stock Exchange listed company which is the UK’s largest independent vehicle retailer.
The lease has an unexpired term of just under 20 years (expiring in June 2037), without a break, and is subject to five yearly upward only rent reviews index-linked to the Retail Prices Index, with a collar and cap of 1% p.a. and 3% p.a. compound. The next rent review is due in September 2018.
The Property comprises a substantial car showroom facility, with extensive vehicle display and compound storage on an 8.6 acre freehold site. Internally, the main facility provides for a large customer area including a reception, sales area, offices and café. The remainder of the site provides for approximately 400 display vehicles. There are two further buildings used for the preparation, valeting and repair of vehicles.
The Property is strategically located fronting the M65 motorway in Burnley, Lancashire and the surrounding area comprises a mix of industrial and residential uses.
The acquisition is being funded from the Company’s Scottish Widows debt facility.
Simon Lee, Partner of LXi REIT Advisors Limited, commented: “This acquisition provides the Company with additional long-term, secure and RPI-linked income at an attractive yield and further diversifies its sector exposure. The property benefits from a strong residual value and is one of the tenant’s top trading locations.”
LXI : LXi buys Motorpoint car showroom