RDI secures electric van maker tenant expansion
RDI REIT has let a 168,154 sq ft industrial and distribution hub in Bicester to UK-based electric van manufacturer Arrival Automotive, following a competitive bidding process.
The latest letting takes the van maker’s occupancy at RDI’s Link 9 Estate to around 288,000 sq ft, having previously agreed a 15-year lease at unit 1A in December.
The agreement, for unit 1B, takes the scheme to full occupancy.
RDI REIT has let a 168,154 sq ft industrial and distribution hub in Bicester to UK-based electric van manufacturer Arrival Automotive, following a competitive bidding process.
The latest letting takes the van maker’s occupancy at RDI’s Link 9 Estate to around 288,000 sq ft, having previously agreed a 15-year lease at unit 1A in December.
The agreement, for unit 1B, takes the scheme to full occupancy.
Both leases expire in December 2034 with no breaks, at a total annual rent of £2.3m. These are subject to five-yearly reviews tied to the higher of open market rental value, and RPI respectively capped and collared at 2% and 4%.
The development and subsequent lettings reflect a 7.5% yield on cost.
RDI previously completed a £26m forward-funding agreement for the two facilities, which were speculatively built, in 2018.
Adrian Horsburgh, property director at RDI, said: “Arrival Automotive is an exciting and growing company which has an important role to play in helping cities meet net-zero emissions targets with the provision of their game changing electric buses and delivery vans.”
Arrival Automotive is valued at an estimated £3bn after it secured a 3% stake from South Korean car giants Hyundai and Kia. It also won a supply contract with US delivery company UPS, for 10,000 purpose-built electric vans.
The Link 9 estate comprises 530,000 sq ft of industrial and warehouse space across 11 units, on a 40-acre site. This is located by junctions 9 and 10 of the M40.
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