Custodian REIT has announced that it has acquired a 55k square foot, high bay distribution unit on Relay Park, Tamworth for £4.7m. The unit is let to Schenker Limited (trading as DB Schenker), a subsidiary of Deutsche Bahn, on a lease that expires on 27 September 2017. The unit is located at junction 10 of the M42. The company says that it has excellent links to the M6 and M1 and that nearby occupiers include Sainsbury’s, Aldi, Yusen Logistics, XPO Logistics and Headlam Distribution. The purchase was funded from the Company’s existing debt facilities, resulting in net borrowings increasing to 12.7% loan to value. The passing rent is £280,000 per annum but the company says that they forecast rent exceeding £345,000 in 2017, reflecting a reversionary yield of circa 7%.
Custodian REIT acquires high bay distribution unit in Tamworth for £4.7m : CREI