As a result of the recent sale of Derbyshire-based AND Automation to VINCI Energies, Alastair Fearn, Director at FHP was invited by the former Directors of Automation solutions provider, AND Automation, to advise them on how best they could structure a sale of the property in which the company was based.
The answer was to grant a new 10 year lease to the operating company, AND Automation and undertake what is referred to as a sale and leaseback.
Alastair was able to market the property to investment market and received a strong level of interest including a number of bids.
The building was sold to a private investor, advised by Chris Sinclair of Innes England at a price which reflects a net initial yield after costs of 7.5%.
Alastair Fearn comments:
“The advantage of a sale and leaseback for building and business owners is that it immediately releases equity tied up in the property which can be used for other purposes, such as investing in the company.
In this instance I was able to sell the property within a short period of time and realise the equity in the building for the Directors. There is appetite in the market for investments at this size level on good buildings such as this.
Tony Brooks of AND Automation added:
“I was really pleased with the way Alastair conducted the sale on our behalf. He kept me well informed throughout the process and we were really pleased to sell the property in such a short space of time.”
