POPCORN FACTORY ACQUIRED FOR PRIVATE INVESTOR IN £850,000 SALE AND LEASEBACK DEAL
Investment specialists at Harris Lamb have bought a Nottinghamshire popcorn factory in a sale and leaseback deal on behalf of a private investor.
The industrial investment opportunity has seen the buyer purchase two self contained units on the Hallcroft Industrial Estate in Retford for £850,000 from Tommy Tucker Limited, with a new 15-year lease being agreed for the popcornmanufacturer to continue to operate from the site.
The business, which has a net worth of more than £3.3million, placed the Aurillac Way site on the investment market in order to utilise the funds from the sale to develop and expand its new complex in South Yorkshire.
Neil Harris, of Harris Lamb’s Investment team, said: “There is an increasing trend toward this kind of deal, where a business wants to free up capital while agreeing favourable terms to maintain a successful operation at its existing site.
“In this case, Tommy Tucker Limited, which was established in 1988, has traded from this particular premises for the past 14 years, and with the Retford factory being integral to its popcorn production operation, was keen to continue to trade at the facility while investing further into its new Dinnington facility.
“The business’ established reputation, low-risk profile and long-term local plans made this a very attractive acquisition for our client, who agreed to pay the full market value of the site, representing a Net Initial Yield of 7.4%.
The passing rent on the new lease will be £66,500, reflecting a rental level of £4.56 per sq ft. The lease will contain five-yearly upward-only rental reviews and a tenant break-option at the tenth year.