Custodian REIT has announced that it has acquired a 44,643 square foot distribution unit, on the Heartlands Business Park, Daventry, for £3.08m. The unit is let to Cummins Limited, on a lease expiring on 15 July 2019, and the current passing rent is £221,045 per annum, which reflects a net initial yield of 6.75%. The acquisition was funded from the Company’s existing debt facilities, which has resulted in net gearing increasing to 23.1% loan to value. The company says that the unit is located within 10 miles of junction 16 of the M1 and the M45 and that nearby occupiers include Wincanton, Wetherspoons, Ceva, Netto and Hankook.
Richard Shepherd-Cross, Managing Director of Custodian Capital (the Company’s investment manager), says that they believe that the unit has strong reversionary potential and that the completion of the current Daventry link road project will improve access to junction 16 of the M1, which will further enhance the appeal of the location to current and prospective tenants.
Custodian REIT acquires Cummins distribution centre in Daventry for £3.08m : CREI