Custodian REIT has announced that it has acquired a 92,672 square foot distribution unit, on Centrum 100 Business Park, Burton upon Trent, for £7.06m. The unit is let to Kings Road Tyres and Repairs Limited, on a lease expiring on 26 July 2031, which is subject to a tenant’s option to break in 2021. The current passing rent is £509,696 per annum, which reflects a net initial yield of 6.77%. The purchase has been funded from the company’s existing debt facilities, resulting in net gearing increasing to 22.6% loan to value.
The company says that the unit is located close to the A38 and A50 with links to the M1, M6 and M42 and that nearby occupiers include Boots, DHL, Clipper Logistics and Palletforce. Richard Shepherd-Cross, Managing Director of the Company’s investment manager, Custodian Capital, says that, “The Midlands is experiencing significant demand for high quality units with good communication links, demonstrated by the strong list of occupiers on this park. We expect these factors to lead to high demand and future rental growth.”
Custodian REIT acquires Burton upon Trent distribution unit for £7.1m : CREI