Mar 21 2013
Sladen Estates and Peveril Securities have secured a double deal resulting in the lease and investment sale of one of South Yorkshire’s most prominent sites, SIRFT 3.
Acting on behalf of Sladen Estates and Peveril Securities, CBRE secured a 25 year lease on the site to Aggregate Industries UK Ltd at a rate of £360,000 per annum. Aggregate Industries UK Ltd has been awarded a 25 year PFI contract from Sheffield City Council for a multi-billion pound road improvement scheme. The tenant will use their new site for the storage and processing of aggregates for the PFI contract, investing £6m into the site including the construction of an office block, concrete batching plant and welfare facilities.
Following the 25 year lease to Aggregate industries an investment sale to SWIP for £5.46m was agreed which represents a net initial yield of 6.23%.
Roger Haworth, Senior Director of Industrial Agency at CBRE in Sheffield, said; “The lease and investment sale represents an excellent result for our client and all parties involved. The site’s positioning and capacity enables the tenant to undertake its PFI contract work effectively and the secure nature of that contract presented a solid investment opportunity for SWIP.”