An independent contractor has successfully completed a significant sale and leaseback agreement involving a substantial industrial property in Barnsley. This transaction, valued at £3.4 million, reflects a net initial yield of 9.25%.
The deal pertains to a 70,865 sq ft industrial building situated on a 10.15-acre site within the Fall Bank Industrial Estate in Dodworth. The buyer, a private investor, has acquired the property as part of a long-term investment strategy. The vendor, a well-established haulage company, has secured a 15-year leaseback arrangement, which includes five-yearly tenant break options.
Oliver Rowe, Director of the contracting firm involved, described the transaction as a pivotal moment for the haulage company. By converting the property’s value into significant capital, the company can now invest this capital back into the business to ensure its long-term success and expansion. Rowe further noted that currently, many business owners are exploring sale and leaseback transactions as an alternative to traditional debt, especially in light of higher interest rates and solid industrial property values.
Christopher Dee represented the interests of the buyers in this notable transaction.
The completion of this sale and leaseback deal demonstrates the ongoing viability and appeal of such financial arrangements in the industrial property sector, providing businesses with crucial capital while offering investors a stable, long-term return.