Custodian REIT has announced that it has a 34,955 square foot retail warehouse in Banbury, currently let to B&Q, for £6.525m. The warehouse is located one mile from junction 11 of the M40 and within walking distance of the town centre and railway station. Nearby occupiers include Wickes, Halfords, Homebase, Dunelm Mill, Topps Tiles and Staples. The lease with B&Q Plc expires on 24 March 2022 with a current passing rent of £478,842 per annum, reflecting a net initial yield of 6.94%. The company says that the purchase has been funded from its existing debt facilities, resulting in net borrowings increasing to 20.1% loan to value. The company says that the unit is prominently located in an established bulky goods retail warehouse pitch, near the Banbury Cross Retail Park and that the development of a proposed 42,000 square foot Waitrose store on land opposite will further strengthen the location.
Custodian REIT acquired B&Q retail warehouse in Banbury for £6.5m : CREI