M&G Investments has bought a shed let to American data security firm Iron Mountain.
M&G has bought the Isis Reach warehouse in Belvedere, Kent, from a charity client of F&C REIT for around £48m – a 6.5% net initial yield – in a deal that took just eight days to complete.
The 350,000 sq ft shed is let solely to data storage firm Iron Mountain, which is used by more than 85% of FTSE 100 firms for information storage and data protection compliance.
Iron Mountain has two separate co-terminus leases, which run until 24 December 2031, guaranteed by its European and American parent companies. They have annual fixed-uplift rent reviews of 3%. The ?shed produces a total rent of £3m pa.
Dowley Turner Real Estate advised M&G; Lee Baron and CBRE acted for F&C REIT.
chris.berkin@estatesgazette.com
