TV studios deal

STV studios sold as part of £80m property deal

STV

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.

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