SLIPIT acquires a Motorpoint car showroom in Stockton-on-Tees

LONDON, UK: Standard Life Investments Property Income Trust (SLIPIT) has completed the purchase of a Motorpoint car showroom in Stockton-on-Tees for £5m, reflecting a net initial yield of 6.5%.

The acquisition will be funded out of existing cash reserves and was a sale and leaseback, with Motorpoint entering into a new 25 year lease (with tenant option to end the lease after 15 and 20 years). The c46,500 sq.ft. showroom sits on a prominent 5.2 acre site, and has recently undergone a comprehensive refurbishment prior to Motorpoint taking occupation.

Mark Blyth, Deputy Fund Manager of SLIPIT commented: “We are pleased to have secured this acquisition, which provides SLIPIT a robust income stream with in-built rental growth. In addition, the recent refurbishment has improved the property from an ESG perspective and we look forward to working with the tenant to explore opportunities to improve this further.”

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