Pacific Industrial & Logistics REIT buys Chesterfield site for £5m

Pacific Industrial & Logistics Real Estate Investment Trust has bought a site at an industrial park in Chesterfield, from Tangerine Confectionary, the owner of Butterkist, Sherbert Fountain and Dip Dab sweet brands, for £4.8m.

The AIM-listed company bought a site at the Holmewood Industrial Park using proceeds of the November 2016 placing of 11.1m shares at £1 each. It will be refinanced under terms agreed with the company's debt facility provider at a loan-to-value of 45%.

Chief executive Richard Moffitt said that the well-located site offers the company an asset management opportunity in the short-term.

Following the acquisition, a short-term lease has been agreed with Tangerine Confectionery, which will expire on 31 May with rent of £42,000 per month. A rent guarantee is in place, so if the building is not re-let after May, then Tangerine Confectionary can stay until 31 December.