Custodian REIT has announced that it has acquired the Phoenix Leisure Park, Crewe (pictured), which comprises four freehold units occupied by Pizza Hut, Mecca Bingo, Odeon Cinemas and MFA Bowl. The park, which is near Grand Junction Retail Park and within walking distance of the town centre and railway station, covers 55,713 sq ft. The units’ leases expire between June 2030 and March 2040 with a total passing rent of £523,625 per annum, reflecting a net initial yield of 7.5%.
The company says that the purchase price of £6.6m was funded from its cash resources following an issue of new shares in December 2015, which raised £44.25m (before costs and expenses). The Company has £40m of term debt and an undrawn £35m revolving credit facility, with net gearing of 5.8% following the purchase. The company says that, on completion of the purchase of a portfolio of 11 UK commercial properties for an aggregate consideration of approximately £69.4m, which is expected to complete in early January 2016, its net borrowings are expected to increase towards the target ratio of 25% loan to value.
Custodian REIT acquires Phoenix Leisure park, Crewe, for £6.6m : CREI