Biomass storage and processing plant acquired for £3.4 million
UK based real estate investment trust LXi REIT has announced its acquisition of the Stobart biomass storage and processing plant in Rotherham, Yorkshire.
LXi REIT has acquired the freehold interest on the facility in a sale and leaseback transaction. According to a statement from the company, the purchase price is £3.4 million (€3.8 million).
The biomass facility has been acquired with a new 20-year lease in place and has been fully let to Stobart Biomass Products and guaranteed by its parent, Stobart Group, a FTSE 250 listed company operating in the energy, aviation and rail sectors.
According to LXi REIT’s statement, the property extends to a total of six acres and will be used by Stobart to supply biomass timber waste to the nearby 41mW Templeborough Biomass Power Plant.
The acquisition is being funded using the proceeds of LXi REIT’s new 11.5 year loan facility secured from Scottish Widows in December 2017, at a fixed rate of 2.85% per annum.