Custodian REIT has announced that it has acquired St. Catherine’s Leisure Park in Perth (pictured), which comprises three units let to Bannatyne Fitness Limited, Scotco (Eastern) Limited (trading as KFC) and The Restaurant Group (UK) Limited (trading as Frankie and Benny’s). The 34,121 square foot park is within walking distance of the town centre and railway station, and is adjacent to St. Catherine’s Retail Park, whose occupiers include Curry’s PC World, Dunelm Mill, Halfords, Home Bargains, Maplin, Sports Direct and T K Maxx.
The units’ leases expire between July and August 2026 with a current passing rent of £389,115 per annum in aggregate, reflecting a net initial yield of 8.17%. The agreed purchase price of £4.5m has been funded from the Company’s existing debt facilities, resulting in net borrowings increasing to 20.2% loan to value.
The company say that all three tenants have rent reviews this year and that they believe the properties have reversionary potential. They also say that in their view the park is well located next to St. Catherine’s Retail Park, which makes it a sought after location for retail and leisure operators alike. They believe that plans for a nearby cinema development, if completed, will further strengthen the area.
Custodian REIT acquires St. Catherine’s Leisure Park in Perth for £4.5m : CREI