Major off-market property deal sees Dundee BT office change hands ahead of completion

A Dundee office development that will eventually house hundreds of BT staff has changed hands as part of a major property transaction.

Stock market-listed LXi REIT, which is one of several quoted real estate investment trusts, said it had acquired the office, extending to 77,000 square feet, by means of a pre-let forward funding.

The property has been fully pre-let to BT Group on a 17.5-year lease. It will house BT's critical infrastructure to handle emergency 999 telephone calls.

The real estate investment trust will receive a cash-backed income from the developer during the construction period in line with the purchase yield.

The Dundee property has been fully pre-let to BT Group on a 17.5-year lease. It will house BT's critical infrastructure to handle emergency 999 telephone calls.

It announced the Dundee office deal as it also confirmed it had acquired five customer service, car storage and repair and maintenance facilities, in Chertsey, Northampton, Newcastle, Carlisle and Cardiff, by means of a sale and leaseback with Cazoo, the online motor retailer. Each property is fully let to Cazoo on a new, unbroken 20-year lease.

No breakdown of the deals was provided but the acquisitions were transacted on an off-market basis totalling £57 million.

Last week, a David Lloyd leisure club in Hamilton and a car storage facility in Edinburgh were among a string of UK assets acquired by LXi REIT in deals totalling £87m.

The fund bought the David Lloyd centre for an undisclosed sum as part of the acquisition spree.

Facilities at the health and racquets club, which extends to 100,000 square feet, include an aerobics studio, fully equipped gym, indoor heated pool, sauna, steam room, four badminton courts, seven indoor and three outdoor tennis courts, six treatment rooms and a hair salon.

The property is fully let to David Lloyd Leisure with 25 years unexpired until first break. Bosses noted that the passing rent was an “exceptionally low” £6.70 per sq ft and increases annually in line with RPI inflation, capped at 4 per cent per annum.

The fund also acquired a customer service, car storage and repair and maintenance facility in Edinburgh, by means of a sale and leaseback with Cazoo.

Among the other assets acquired by LXi REIT were a Premier Inn hotel in Exeter and a car park in York.

Read More

Read More
Hamilton leisure club and Edinburgh car storage facility part of £87 million pro...

A message from the Editor:

Thank you for reading this article. We’re more reliant on your support than ever as the shift in consumer habits brought about by coronavirus impacts our advertisers. If you haven’t already, please consider supporting our trusted, fact-checked journalism by taking out a digital subscription: www.scotsman.com/subscriptions

 0 comments

Want to join the conversation? Please or to comment on this article.