Lancashire Motorpoint showroom snapped up for £5.7m
The Motorpoint car showroom in Burnley in Lancashire has been acquired by property investment company LXi REIT for £5.7m.
The deal reflects a net initial yield of 6.5% (net of acquisition costs), which is expected to rise to more than 7%.
The property is fully let to listed Motorpoint, the UK’s largest independent vehicle retailer.
It 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 about 400 display vehicles. There are two further buildings used for the preparation, valeting and repair of vehicles.
Simon Lee, partner of LXi REIT Advisors, said: “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.”
