Acquisition and disposal of a prime single let industrial investment
New 31,568 sq ft warehouse. The property is let to Funrise International Limited on a new full repairing and insuring lease from 1 May 2019 for a term of 10 years. There is a six month rent deposit of £133,875 plus VAT. There is also a parent company guarantee from Matrix Holdings Limited.
The lease is within the security of tenure provisions of the Landlord and Tenant Act 1954. There is a stepped rent for the first five years of the term as follows:
- Year 1 - £142,375 pa
- Year 2 - £170,000 pa
- Year 3 - £191,250 pa
- Year 4 - £212,500 pa
- Year 5 - £267,750 pa
The vendor will top the rent up to £267,750 per annum from completion. The rent will be reviewed 5 yearly subject to RPI linked uplifts with a collar and cap at 2% and 4% per annum.
The minimum rent following rent review will therefore be £295,617 per annum.