In October 2012 Ducalian Capital completed on the leasehold interest in an industrial warehouse in Bracknell, Berkshire. A planning application to increase the gross internal area of the property was granted and development work to convert the property into a managed storage facility was completed six months later.
Structure Enterprise Investment Scheme
The company agreed a 25 year lease for the 25,585 sq. ft. warehouse on a rent of £7.50 per sq. ft. The high 8.2m eaves enabled the construction of two mezzanine floors delivering 40,000 sq. ft. net lettable area (NLA).
This represented a c60% increase in the current NLA and a c200% increase in the price per sq. ft., enabling the business to potentially deliver a year 5 projected EBITDA of £604,099 and reflecting a projected Return on Equity (ROE) of 22% per annum.
The investment was structured as an Enterprise Investment Scheme to allow investors the opportunity to benefit from a range of tax reliefs.
Forecasts are not a reliable indicator of future results