Custodian REIT has added to its portfolio, paying £2.465m for a 17,384 sq ft, four storey office building in Glasgow city centre, with excellent transport links to junction 19 of the M8, Central and Queen Street train stations and Buchanan Street underground station. The property is let to four tenants with lease expiries between 30 March 2018 and 29 September 2022, with total rental income of £222,008 a year which works out as a net initial yield of 8.51%.
They have now spent £94m on building the portfolio. they are paying for this deal in cash – after raising £22.6m from investors earlier this month. Borrowings are quite low – their loan to value ratio is just 6% currently.
CREI : Custodian REIT investing in Glasgow