Custodian REIT has announced the acquisition of a portfolio of 10 properties.
Six are high street shops, spread around the UK, with an average lot size of £1.21m. Four are industrial units with an average lot size of £1.83m. They say locations include Chester, St Albans, Bristol, Farnborough and Kettering and tenants within the portfolio include BSS Plc, EE Limited, Kuoni Travel Limited, Shoe Zone Limited, Wilko Retail Limited and Waterstones Booksellers Limited.
The agreed purchase price of £14.6m was funded from the Company’s existing credit facilities, with net borrowings following the acquisition increasing to 16.7% loan to value.
The portfolio’s current passing rent of £1.12m reflects a net initial yield of 7.27% with an average weighted unexpired lease term of 6.2 years. There are ongoing negotiations with two tenants to re-gear short, unexpired lease terms, with the potential to extend leases with existing tenants.
CREI : Custodian REIT buys property portfolio