Saville Gordon Estates are set to acquire a 14ha (34 acre) Staffordshire industrial estate for £7.8m from Lucas Industries. The sale-and-leaseback agreement is financed by a vendor placing of ordinary shares.
Fradley Aerodrome, three miles east of Lichfield, comprises 37,160 sq m (400,000 sq ft) of industrial accommodation in five former aircraft hangars and 15 ancillary buildings. It will be leased back to Lucas on a short-term lease until 31 December 2000 on an annual rent of £700,000, reflecting an overall charge of £1.75 per sq. ft. The tenant will have an option to determine the lease or take two further short-term leases of designated buildings on the estate.
In the medium term Saville Gordon expects to exploit the site’s proximity to the proposed Birmingham Northern Relief Road. Site density, currently at 27%, lends itself to further development, the company said.
EGi News 23/04/99
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