A significant transaction has been concluded involving the sale and leaseback of a 70,865 sq ft industrial building located in Barnsley for £3.4 million, achieving a net initial yield of 9.25%.
The property, situated on a 10.15-acre site at the Fall Bank Industrial Estate in Dodworth, has been acquired by a private investor as a part of their long-term investment strategy. The transaction includes a 15-year leaseback agreement with tenant breaks every five years, favouring the long-established haulier company, Truswell Haulage.
Oliver Rowe, Director at the consulting firm responsible for the deal, highlighted the strategic importance of the sale leaseback arrangement for Truswell Haulage. According to Rowe, “Completing this strategic sale leaseback deal marks a pivotal chapter for our client, Truswell Haulage. By unlocking significant capital, the company can now prioritise ongoing investment into the business to secure its long-term future and further grow its operations.”
In the current economic climate marked by elevated interest rates and strong underlying industrial values, sale and leaseback arrangements are becoming an increasingly viable alternative for business owners. Notably, Christopher Dee acted on behalf of the purchasers in this transaction, supporting the acquisition.
The financial structure of this deal provides Truswell Haulage with the flexibility to reallocate its resources towards business expansion, reducing reliance on traditional forms of debt. This approach aligns with the broader trend of companies seeking innovative ways to unlock capital while maintaining operational continuity.
The completion of this £3.4m sale and leaseback transaction represents a strategic financial manoeuvre, enabling Truswell Haulage to strengthen its business foundation while providing the investor with a valuable long-term asset.