Vehicle service centre sold as part of £23m deal

LXi REIT has bought a pre-let Mercedes commercial vehicles service centre site in Birmingham.

The new development will comprise 35,647 sq ft of warehouse, servicing, showroom and office space over two floors, on a four acre site.

The property has been pre-let to Midlands Truck and Van, with a guarantee from its parent Ballyvesey Holdings Limited, on a new, 30-year lease from completion of the building works.

Ballyvesey Holdings is the privately owned parent company of a wide range of trading subsidiaries. Established in 1970, the group’s main activities are centred around transport and logistics, truck sales and after sales support, trailer manufacturing and spare parts sales, transport industry services, construction equipment sales and service and property rental and development.

The acquisition is part of £23m deal to buy sites across the UK.

John White, partner of LXI REIT Advisors, said: “We are pleased to be acquiring, on an off-market basis, these attractively-priced assets let on long leases to strong tenant covenants across robust sectors with high residual values, which are expected to provide our shareholders with further diversified, secure and inflation-linked income and capital growth potential.”