Dakota Portfolio Sale and Leaseback
16th March 2017
Travis Perkins has completed the sale and leaseback of a £37.8m
portfolio of Wickes DIY units and a Travis Perkins trade unit with clients of
Leonard advised Investra.
The 'Dakota Portfolio' comprised eight
recently developed or refurbished units, completed by Travis Perkins
Properties, in: Bridgwater, Burgess Hill, Christchurch, Corby, Halifax,
Midsomer Norton, Norwich, Stowmarket.
The leasebacks are for terms of 15
years with the initial rentals ranging between £15.50 per sq ft and £9 per sq
ft and subject to five-yearly rent reviews to Market Rental. The individual
pricing achieved ranged from 5.70% to 7.0 %, depending on the unit and
FTSE 250 listed Travis Perkins was
advised by Hoddell Stotesbury Morgan and Herbert Smith Freehills.
Darren Screen, Property Finance
Director for Travis Perkins, said "These locations trade very well. All but one
of the units is configured to Wickes' latest trading format which has been
delivering exceptional sales growth for our Consumer Division, both in-store
and on-line. This sale fits with our on-going strategy of recycling capital to
invest in further developments and to promote further growth for the Group."
Investra Capital were advised by Cyril Leonard.
Martin Waller of Investra said: "We are
delighted to have completed this transaction with Travis Perkins. The portfolio
offers our investors stable income, secured against a strong covenant, with
geographical diversity and good growth potential."