SEM- and JSE-listed Atlantic Leaf, through its wholly-owned subsidiary Trido, has completed the acquisition of a multilet industrial and office property – Deacon Park – in Knowsley, in the UK, from JCAM Commercial Real Estate Property.
The acquisition of the property is consistent with Atlantic Leaf’s strategy of investing in real estate assets that deliver good returns for investors through predictable income from long-term leases and capital growth.
The company further noted that the transaction is attractive as it provides high income, while also offering potential for mid- to long-term growth through active asset management.
The property comprises an industrial warehouse that accounts for about 80% of the floor area, with multilet industrial and office space across the remaining 20%.
The main industrial element of the property is made up of a 460 000 ft2 warehouse facility fully let to LSE-listed holding company B&M Retail on a lease expiring in August 2022.
The office space is made up of one large 69 000 ft2 block and 15 smaller industrial and office suites of varying sizes. Sixty per cent of office space is let to large public services provider Serco.
Currently a small number of office units, representing less than 2% of rental income, are vacant, which lends itself to further upside once occupied.
The net purchase consideration (excluding transaction related costs) for the transaction is £14.91-million, with the net purchase consideration and transaction related costs to be settled through a combination of cash and debt funding.