Alstom/GEC, Plot 7, Redhill Business Park, StaffordPosted on December 15, 2016
UK in house pension fund clients of Clay Street successfully reached the practical completion of the new state of the art automation R&D facility in Stafford with developer Goodman.
The Pension Fund agreed terms to fully fund construction of the ‘Centre of Excellence’ in Q4 2015.
The asset occupies a prime position on Redhills Business Park, an established logistics location close to junction 14 of the M6 motorway.
The core building provides approximately 131,676 sq ft with additional first floor of 66,166 sq ft providing an estimated total GIA of 197,842 sq ft on a site of area of 11.4acres.
The investment provides an undoubted indexed income stream for 20 years with an option to extend. Let upon practical completion to the 5A1 rated covenant of Alstom Ltd, with a guarantee from Alstom Holdings, a world-renowned engineering company.
The annual rent of £1.7m equates to a rate of £8.60 psf which includes numerous items of additional tenants specification funded by the buyer.
The end investment value of £28.4m equated to a NIY of 5.75% after costs.