Midlands-based property developer and asset manager, Rotherhill, in partnership with a long-standing private office joint venture partner, has acquired a 78,770 sq ft industrial investment split across two neighbouring buildings on a 5.96-acre site in Alfreton, Derbyshire.
The property is fully let to TRT (Turbine Repair Technology) Limited, a joint venture between Rolls-Royce Plc and Chromalloy UK Ltd, on two coterminous leases running until 2033.
With site coverage of just 25%, the asset offers strong underlying fundamentals and future potential.
As part of the acquisition process, Rotherhill worked closely with both the vendor and the tenant to implement a comprehensive lease regear. The new lease structures consolidate occupation across the entire site, remove a break option in 2026, and introduce a clear upward-only rent review mechanism in 2028 alongside guaranteed annual stepped rental increases throughout the term.
Clarity has also been introduced around the condition of the premises at lease expiry, ensuring a clean handover for all parties following the removal of TRT’s extensive plant and machinery.
Ed Jeffrey, director of Rotherhill, said: “We are very pleased to have completed this purchase. We’ve worked hard with the seller and tenant to restructure the leases, unlocking value for all parties.
“The property is well located, let at a discount to current market levels and benefits from guaranteed rental growth, making it an excellent addition to our asset management portfolio.
“Our thanks go to Andrew Mellor of Penningtons Manches Cooper who undertook all legal work, Andy Price of AP Investment who provided investment agency advice, and Ned Jones and Harry Abell at Cushman & Wakefield who acted for the seller.”
Andy Price, director, AP Investment, said: “In a continuing competitive industrial investment market, it was pleasing to complete the acquisition as it offers a strong underlying location, high yielding initial return, further guaranteed rental performance and long term future options.”
Andrew Mellor, partner, Commercial Real Estate, added: “It’s been a pleasure working with the Rotherhill team and the other parties and advisers on this latest acquisition and re-gear of the occupations. The project has been challenging at times, but I’m delighted that it’s completed. This investment makes a great long-term addition to the Rotherhill portfolio.”
