A little over two years after acquiring the adjoining Shop Direct HQ, Palmer Capital has committed further investment capital into Estuary Business Park, Speke, a significant growth area just 8.6 miles south–east of Liverpool city centre.
On behalf of The Palmer Capital Income Fund, Palmer Capital has acquired a 65,160 sq.ft industrial facility leased to agricultural giant Cargill Plc for a further 13 years, subject to five yearly RPI rent reviews collared and capped at 1-4% per annum. The asset has been acquired for £5.6m which reflects a net initial yield of 5.6%.
Rupert Sheldon, Director, Head of Core REIM at Palmer Capital commented “This acquisition plays to all of our key themes for the fund with a low site cover of sub-20%, a strong resultant residual value and a building leased to a first rate covenant with a long and progressive income.”
Christopher Dee and GVA acted for Palmer Capital whilst Knight Frank advised the vendor, Hansteen.