In November 2013 Ducalian Capital acquired a 22,000 sq ft freehold industrial warehouse in Royal Leamington Spa, Warwickshire for £1,250,000.
The location was particularly attractive due to its affluent demographic, proximity to Warwick University and lack of competition.
Structure Enterprise Investment Scheme
Following advice from RPS Group, Ducalian Developments submitted a change of use planning application which was granted prior to completion. Ducalian Developments successfully developed the warehouse into a high quality storage facility.
The investment strategy was to increase the estimated rental value of the property from £100,000 per annum at acquisition to an EBITDA of £537,585 in year 5.
Ducalian Developments also identified a further 2,000 sq ft of income generating space in the rear service yard that could potentially generate £50,000 - £60,000 in additional revenue.
Forecasts are not a reliable indicator of future results