CREI : Custodian REIT buys in Warrington
Custodian REIT is buying a warehouse in Warrington let to JTF Wholesale Limited for £6m.
The 112,435 sq ft warehouse sits on 6.84 acres of land on the Chesford Grange estate in Warrington – just off j21 of the M6 motorway. JTF Wholesale Limited operate 13 wholesale warehouses around the UK and have traded from the premises for the last eight years. The property is let on a 15 year lease expiring in December 2023 at a current rent of £485,000 (£4.30 per sq ft) – a net initial yield of 7.64%. Custodian REIT point out that the price works out at £53 per square foot which is not far off the cost of rebuilding the warehouse.