Custodian REIT has acquired a 105,757 sq ft distribution unit on Winsford Industrial Estate, located 10 miles from junctions 18 and 19 of the M6. Nearby occupiers include Henkel, Iveco and Jiffy Packaging.
The unit is let to H&M Hennes and Mauritz UK Limited on a lease expiring on 23 June 2025. Current passing rent is GBP423,000 per annum reflecting a net initial yield of 7.15%, with an expected reversionary yield of circa 8.5%.
The agreed purchase price of GBP5.55 million was funded from the Company’s existing cash resources, resulting in net gearing increasing to 13.9% loan to value.
This recently refurbished unit is one of H&M’s three UK distribution locations and includes circa 1.8 acres of potential expansion land to meet future requirements.
CREI : Custodian REIT buys H&M distribution facility