17 Apr 2023 07:00
17 April 2023
Highcroft Investments PLC
Warehouse Property Acquisition
The Board is pleased to announce that, on 14 April 2023, Highcroft Investments PLC, via its property owning subsidiary Rodenhurst Estates Ltd, completed on the acquisition of the freehold interest of a property being units 12, 13 & 14 Aberaman Industrial Estate, Aberdare, South Wales.
The property, acquired from Colin James Johnston and Alison Mary Louise Johnston trading as Clear Partnership, comprises 3 units that have been combined to create one large unit totalling 81,000sq ft. The unit occupies a site of 4.45 acres and has an additional ancillary car park of 0.86 acres. The property is fully let to Fiberweb Geosynthetic Limited with the guarantor being Chicopee Holdings BV. The tenant forms part of the Berry Global Group which has been listed on the New York Stock Exchange since October 2012. The current lease term expires on 28th November 2032, offering a term certain of 9 years 7 months. The lease is fully repairing and insuring, and the current passing rent is £3.94psf equating to £319,383 per annum.
The property has been acquired for £3,725,000, exclusive of costs, which represents a net initial yield of 8%. The total transaction costs including Welsh stamp duties are 6.8%. The acquisition will be funded by utilising part of the cash held from the sale of Llantrisant which occurred on 8 February 2023.
Commenting on the acquisition, chief executive Paul Leaf-Wright said "We are pleased to have redeployed part of the proceeds of £7.85m, received from the recent sale of our Llantrisant property, into a quality income producing asset that complements the existing portfolio. It builds on our strategy of adding to the long-term income of the company to ensure we deliver attractive earnings to our shareholders with defensive assets that offer both rental and capital growth. The lease term improves our overall weighted average unexpired lease term.
The board will look to deploy the remaining proceeds and will inform shareholders once further transaction(s) have been completed.
For further information contact:
Highcroft Investments PLC:
Paul Leaf-Wright / Roberta Miles 01869 352766
Singer Capital Markets
Peter Steel / Alex Emslie - Investment Banking
+44 (0)20 7496 3000