Investors park up with £19m site acquisition
Investors at LXi REIT have acquired a Sheffield car park owned by Q-Park for £19.1m.
The Rockingham Street site acquisition reflected a blended net initial yield of 5.2%.
The car park, which comprises 96% of the property, is let to Q-Park, with a lease guarantee from its parent, Q-Park N.V., which forms part of the Q-Park group, one of Europe’s largest car park operators.
This lease has an unexpired term of over 28 years, expiring in August 2045, and is subject to five yearly upward only rent reviews. The next rent review is due in August 2020.
Purpose-built for the tenant in 2010, the site is a six-storey, 531-space car park in the city centre.
The remainder of the site is let to a leisure operator for use as a bar/restaurant with an unexpired lease term of over 19 years.
The acquisition is being funded from equity resources, with senior debt finance expected to be introduced in the near term and the deal will be completed around 12 April 2017.
John White, partner of LXi REIT Advisors Limited, commented: “With an unexpired lease term certain of over 28 years, an RPI rent review and a strong covenant in Q-Park, this investment generates a secure, very long term and index-linked income.
“We are also at an advanced stage on a number of attractive forward funded pre-let and standing assets, leased to institutional grade tenants, which meet the company’s investment criteria.”
