Business
Acquisition of state-of-the-art car showroom
Acquisition of state-of-the-art car showroom.
About this update from Alternative Income Reit Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0648A\n Alternative Income REIT PLC\n 31 January 2022\n \n \n \n 31 January 2022\n Alternative Income REIT PLC\n (\"AIRE\", the \"Company\" or the \"Group\")\n ACQUISITION OF STATE-OF-THE-ART CAR SHOWROOM IN PRIME LOCATION IN SLOUGH, LET TO VOLVO ON A LONG LEASE WITH INDEXED-LINKED RENTS\n The Board of Directors of Alternative Income REIT PLC (ticker: AIRE), the owner of a diversified portfolio of UK commercial property assets predominantly let on long leases with inflation-linked rent reviews, is pleased to announce that the Company has completed the acquisition of the Volvo car showroom in a prime location on the A4 Bath Road, Slough (the \"Asset\") for £5 million (net of acquisition costs to the Company), in an off-market transaction. The price reflects a net initial yield of 5.00% and a discount to replacement costs. The Asset has been acquired with a weighted unexpired lease term of over 15 years.\n \n \n \n \n The acquisition of the Asset redeploys the net proceeds from the Group's disposal, announced on 30 November 2021, of its Audi car showroom in Huddersfield for £5.5 million, \n with a materially longer lease term.\n \n \n \n \n The lease of the Asset, which expires in March 2037, is subject to five-yearly upward only rent reviews linked to RPI. The reviews contain a collar of 1.5% pa and a cap of 3.5% pa. The Asset has a passing rent topped up by the vendor to £270,000 pa (equivalent current ERV pa level) until the next rent review, which is due on 17 March 2022.\n \n The Asset is fully let to Volvo Car UK Limited, which forms part of the Volvo Group, which is ultimately owned by Zhejiang Geely Holdings Group, a Chinese multinational automotive manufacturing company. The property is wholly sub-let and occupied by Endeavour Automotive Limited, which has a strong and established trading track record in a structurally supported sub-sector.\n \n The Asset is in a prime location, a short distance from Slough Trading Estate and just north-west of Slough town centre, and with a prominent frontage onto the Bath Road. Slough is a large London commuter town located approximately 22 miles west of central London with excellent road, rail and airport connectivity, and the town has the UK's highest concentration of headquarters of global companies outside of London.  ...