Leeds, United Kingdom
| DAY 0 | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | |
|---|---|---|---|---|---|---|
| Investment | (£7,950,000) | - | - | - | - | - |
| Rent | 5,36,389 | 5,78,158 | 5,78,158 | 5,78,158 | 5,78,158 | |
| Enhanced Yield | 66,600 | 54,000 | - | - | - | |
| Corporation tax | (29,279) | (39,721) | (52,771) | (52,771) | (52,771) | |
| Sale Proceeds | - | - | - | - | 1,04,55,973 | |
| Unleveraged cash flows | £ (4,775,000) | £295,902 | £278,767 | £278,767 | £278,767 | £6,427,652 |
| Rental Yield | 6.19% | 5.84% | 5.84% | 5.84% | 5.84% | |
| Debt drawdown | 43,50,000 | - | - | - | - | - |
| Bank legal, broker and arrangement fee |
(75,000) | - | - | - | - | - |
| Interest | - | (2,91,450) | (2,91,450) | (2,39,250) | (2,39,250) | (2,39,250) |
| Debt repayment | - | - | - | - | - | (43,50,000) |
| Leveraged cash flows | £ (2,430,000) | £194,867 | £177,732 | £177,732 | £177,732 | £3,906,617 |
| Cash-on-cash yield | 8.02% | 7.31% | 7.31% | 7.31% | 7.31% |
£7,250,000
Price paid to the seller for the asset
£352,350
Stamp Duty Land Tax paid to the government for the purchase
£145,000
Commission paid to estate agent to execute the transactions
£17,500
Expenses incurred to complete the transaction
£32,400
Expenses incurred w.r.t Special Purpose Vehicles
£43,492
Funds reserved for contingencies
£109,257.5
Expenses incurred to arrange debt financing
Encon is one of the largest construction material distributors in the UK. Formed in 1981,the company primarily distributes insulation, building construction & interior supplies through its 23 hubs across the UK.
Total area
85,757 sq.ft
Rent per sq.ft
£5.50
Credit Risk Rating
5A2
Rent Review
Every 5 years
Tenant Break
5 years
Lease period
10 years
Rent Review Type*
Upwards Only
* Rent Reviews are based on the Retail Price Index (RPI). Here, there is a cap of 3% p.a. (1.16x over 5 years) and a collar of 1% p.a. (1.05x over 5 years).
Leeds is the 3rd largest city in the England after London and Birmingham. London is 2.5 hours by train.
The asset spans across 108,067 sf over a large site area of 5.24 acres. The eaves height to the lowest point is 6.5m and there are 10 ground level access doors. Externally there is a separate car park providing 67 car spaces. The unit has been leased to Encon, a leading building material distributor.
