Atlantic Leaf moves into Merseyside


Atlantic Leaf moves into Merseyside

Published Date: 2018-03-27 | Source: Stephen Gunnion | Author: Stephen Gunnion

Atlantic Leaf moves into Merseyside

The UK property investor has bought an industrial and office property near Liverpool as it focuses on returns

Atlantic Leaf has bought a multi-let industrial and office property in Knowsley outside Liverpool in the North West of England for a net £14.9 million as part of its strategy of investing in real estate assets that deliver good returns through predictable income from long-term leases and capital growth. It says the purchase of Deacon Park is attractive as it provides high income while also offering the potential for mid- to long-term growth through active asset management.

The business area of Knowsley accommodates hundreds of occupiers over 1 200 hectares of land, including tenants such as Amazon and Toyota. Atlantic Leaf says the area has good transport connections throughout the region. Deacon Park comprises a warehouse and office space. The warehouse is fully let at a relatively low rental to discount retailer B&M up until August 2022 and could fetch a higher rent after that. The office space is 60% let to services group Serco, with the rest let to a variety of smaller tenants. A small number of office units representing less than 2% of rental income are vacant.

The company says it will fund the transaction through a combination of cash and debt but says additional equity could be raised at an appropriate time in the future to replenish the cash reserves used to fund this acquisition.

Its shares closed 2.4% higher at R16.80 yesterday.

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