LXi REIT has acquired the SIG manufacturing facility at Welton, Carlisle, in a sale and leaseback transaction.
LXi REIT said the purchase price for the property was £9.3m, reflecting a net initial yield of 7.0% (net of acquisition costs to the company).
LXi REIT said the property had been acquired with a new 25-year lease in place and was fully let to SIG (Trading) Limited, the principal trading company of the SIG plc group, a leading, multinational manufacturer and distributor of specialist building and energy management products in the UK and Europe.
It said the new 25-year lease (with no tenant break right) expired in May 2042 and was subject to five yearly upward only rent reviews index-linked to the Retail Price Index (collared and capped at 2% p.a. and 4% p.a. compound).