Unit 9, The Sterling Centre, Bracknell

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.

Investment Highlights

Equity Raised 
£2,200,000
Projected EBITDA £604,099
Target ROE
22% per annum
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). According to CBRE, the valuer, once developed the average storage price will be £22 per sq. ft. rising to £27.25 per sq. ft. in year 5.

This represented a c60% increase in the current NLA and a c200% increase in the price per sq. ft., enabling the business to deliver a year 5 projected EBITDA of £604,099 and reflecting a 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.

Photos of the development and operating facility >>