Unit 660, Skyline 120, Braintree

In April 2013 Ducalian Capital completed on the leasehold interest in an industrial warehouse in Braintree, Essex.

Investment Highlights

Equity Raised £2,350,000
Projected EBITDA £552,392
Target ROE 17%
Structure Enterprise Investment Scheme

 

The company agreed a 25 year lease for the 27,756 sq. ft. warehouse on a rent of £6.50 per sq. ft. The 8m clear eaves allowed the construction of two mezzanine floors built within the high quality warehouse, increasing the net lettable area (NLA) to 42,000 sq. ft.

The investment strategy was to deliver a successful storage business for a growing domestic and business customer base and deliver a stable earnings stream for shareholders. With an average pricing structure from £24 per sq. ft. and the significantly increased NLA, the property and business are able to deliver a year 5 projected EBITDA in the region of £552,392.

Development work will be carried out over two phases to mitigate risk and furthermore the investment was structured as an Enterprise Investment Scheme (EIS) to allow retail investors the opportunity to benefit from a range of tax reliefs.

Photos of the development and operating facility >