Gatehouse Bank secures Rolls Royce facility

London, UK: Gatehouse Bank plc (Gatehouse), a wholesale Shariah compliant investment bank in the City of London, has completed the acquisition of a 541,962 sq ft core manufacturing and logistics facility let to Rolls Royce plc, in Glasgow. The lease provides 17 years of certain term income and fixed rental uplifts of 1.5% per annum. The net purchase price represents a net initial yield of 6.60% on standard purchaser’s costs.

Adam Cavanagh, Head of Acquisitions, Real Estate at Gatehouse Bank, explains: “Glasgow is a major business location and the largest industrial centre in Scotland. The fact that the industrial market has also shown resilience in 2010 makes this a solid investment opportunity with significant capital growth potential and secure current income returns.” He adds: “There is considerable and growing demand for long-leased properties with strong covenants, such as Rolls Royce plc. We believe this demand is set to continue, resulting in increases in capital values over the projected hold period to generate strong returns for our investors.”

The property was acquired from a fund managed by Evans Randall, the privately held UK investment banking and private equity group. Kent Gardner, Chief Executive of Evans Randall, said: “The disposal reflects our strategy to focus largely on landmark office assets in Central London and major European central business districts, where we continue to seek investment opportunities.”

The value of Gatehouse Bank’s real estate portfolio has reached in excess of £200 million in less than 18 months. The bank continues to provide an attractive portfolio of property investments for investor clients, originating, structuring and funding investments in a Shariah compliant manner.

Gatehouse Bank was advised by Trowers & Hamlins and Knight Frank. Evans Randall’s retained adviser CB Richard Ellis represented them in the transaction.