TV studios deal
STV studios sold as part of £80m property deal
STV studios are part of the deal
A property investment trust has acquired STV’s media studios and HQ in Glasgow, a recycling centre in Aberdeen and the life science and biotech campus in York in a deal worth £80 million.
LXi REIT, a specialist inflation-protected long income REIT, said the deal reflects an accretive 5.25% average net initial yield, compared to a current portfolio value of 4.7%, and follows the company’s £100 million placing last month.
The acquisition of STV’s facilities at Pacific Quay is through an off-market transaction. The facility, which was purpose-built for STV, comprises 63,000 sq ft over four floors, along with 150 car parking spaces.
It benefits from a new, unbroken 20-year lease to STV and the current rent is £16.25 per sq ft compared to Grade A office rent in Glasgow currently in the order of £35 psf. The rent, during the lease term, increases five yearly at a fixed rate of 1.5% pa.
LXi has acquired a waste recycling and storage facility two miles south of Aberdeen at East Tullos which is let to Biffa on a long lease with 14 years unexpired to first break. The rent increases on an annual basis in line with CPI inflation, with a collar of 2% pa and a cap of 4% pa.