Boots, Letchworth

A highly reversionary industrial investment opportunity,

let to an excellent covenant benefitting from a very attractive

dual rent review mechanism of annual uncapped CPI

reviews and 5 yearly open market reviews.

Located in Letchworth a sought after South East

distribution location set within the highly desirable M1 -

A1(M) corridor.

Single let warehouse extending to 82,808 sq ft

(7,693.12 sq m).

The total site area of 3.784 acres provides a low site

coverage of 32%.

The Property is held as a Long Leasehold interest

with approximately 114 years unexpired at an annual

peppercorn rate.

Let to the excellent covenant Alliance Healthcare

(Distribution) Ltd, one of the largest wholesale pharmacy

suppliers and distributors in Europe with major contracts

including the NHS and Boots.

Lease expires 31st March 2033 with a tenant rolling break

option that is exercisable at any time from the 1 June 2026

on 6 months’ notice.

The April 2023 CPI rent review is being implemented. This will

result in a low passing rent of £762,164 per annum, £9.20 per sq ft.

The lease benefits from highly attractive annual uncapped

CPI linked rent reviews and 5 yearly rent reviews to Open

Market Rent if higher providing significant reversionary

potential.

April 2023 Open Market Rent Review is outstanding.

We are instructed to seek offers in excess of £10,000,000 (Ten

Million Pounds) reflecting a net initial yield of 7.15% after

deducting for standard purchasers’ costs of 6.80% reflects a

low capital value of £121 per sq ft.