Acquisition of Iron Mountain. Tom Paton-Smith.

Industrial & logistics, Agency, Investment, Lease advisory, Property Management

Reality income

This project was worked on by the following people, working in partnership from across our business…

  • Gerry Young Partner, Commercial Agency and Advisory
  • John Hulme Head of Industrial and Logistics Sector Partner, Commercial Agency and Advisory
  • Luca Nardini Associate, Commercial Agency and Advisory
  • Mark Hull Partner, Property Management

Key information

Montagu Evans advised Realty Income on the acquisition of Iron Mountain’s last mile distribution facility in Belvedere, London. The unit was specifically designed for the tenant and operates as their largest facility in Europe.

The modern high quality distribution warehouse totalling 345,794 sq ft GIA is let in its entirety to Iron Mountain (UK) Ltd on two separate co-terminus FRI leases expiring 24th December 2031, guaranteed by Iron Mountain Europe Limited and Iron Mountain Inc. The total passing rent of £3,690,467 per annum reflects a low reversionary rent of £10.67 per sq ft. The five yearly rent reviews are subject to 3% annual fixed increases.

Montagu Evans also advised Realty Income on the acquisition of TK Maxx’s prime distribution centre in Walsall. The unit was specifically designed for TK Maxx’s operations in 2005.

The modern high quality distribution warehouse totalling 270,065 sq ft GIA is let in its entirety to TJX UK on an FRI lease expiring 24th February 2025, guaranteed by TJX Europe Ltd. The total passing rent of £1,406,125 per annum reflects a low reversionary rent of £5.20 per sq ft.

Realty Income purchased both units for £120,000,000 in April 2021 which reflects a blended net initial yield of 3.98% and capital value of £195 psf.

 

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Acquisition of Phoenix Trading Estate. Gerry Young.

Industrial & logistics, Agency, Investment, Lease advisory

Aberdeen Standard Investments (Abrdn)

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