Custodian REIT has announced the acquisition of an GBP11.5 million portfolio of three properties.
The Portfolio comprises:
- a 25,471 sq ft office on Pegasus Business Park, Castle Donington, adjacent to East Midlands Airport and Junction 23A of the M1, let to National Grid plc with an unexpired lease term of 6.2 years;
- a 16,470 sq ft office in Cheadle, Greater Manchester, at Junction 3 of the M60 and nine miles from Manchester Airport, let to Wienerberger Limited with an unexpired lease term of 2.1 years; and
- a 119,600 sq ft industrial unit in Wolverhampton, four miles from Junction 1 of the M54, let to Assa Abloy Limited with an unexpired lease term of 2.1 years.
The Portfolio’s current passing rent of GBP0.99 million reflects a net initial yield of 8.04%, with an expected reversionary yield of 9.63%.
The purchase price of GBP11.5 million was funded from the Company’s cash resources, following the drawdown of a new GBP45 million term loan on 6 June 2016. Net gearing (gross borrowings less unrestricted cash divided by property portfolio valuation) following the acquisition has increased to 14.9%.
CREI : Custodian REIT buys £11.5m property portfolio