Stobart biomass plant acquired in multi-million pound deal

A real estate investment trust has acquired the Stobart biomass storage and processing plant in Rotherham in a multi-million pound deal.

LXi REIT has bought the site for £3.4m in a sale and leaseback transaction.

The property has been acquired with a new 20-year lease in place and is fully let to Stobart Biomass Products and guaranteed by its parent Stobart Group, the FTSE 250 listed company which is one of the UK’s leading infrastructure and support service businesses operating in the energy, aviation and rail sectors.

The site extends to a total of six acres and will be used by Stobart Group as a storage and processing site to supply the nearby 41 megawatt Templeborough Biomass Power Plant with biomass timber waste.

John White, partner of LXi REIT Advisors, said: “We are pleased to have acquired, off-market, the Stobart biomass storage and processing facility, which provides the company with an attractive net initial yield and secure, long-dated, inflation-linked income stream.

“The property is underpinned by a strong industrial location and residual value and further diversifies the company’s tenant and sector exposure.”