Custodian REIT has announced the purchase of two properties – one in Liverpool, for £6.4m, and one in Stoke-on -Trent for £4.855m. Both purchases have been funded from the company’s existing debt facilities increasing its loan to value to 18.0%.
The Liverpool property is a 34,686 square foot unit on Hanover Street, which is located opposite Liverpool ONE, a key retail and leisure destination in the city. The property comprises the ground and first floors beneath one of Premier Inn’s busy city centre hotels (other nearby occupiers including Nando’s, John Lewis, Home Bargains, Tesco, Subway, Ted Baker and Primark) and consists of a large restaurant let to Ocean Park Limited (trading as Tai Pan) and a health centre let to Liverpool Community Health NHS Trust, on leases expiring on 15 April 2038 and 31 October 2023 respectively. The current passing rent is £474,867 per annum reflecting a net initial yield of 6.96%. Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s discretionary investment manager) says that they believe the property has strong reversionary potential and that further diversification of the portfolio, into both leisure and health care, adds an additional positive dimension to this acquisition.
The Stoke-on-Trent property is a 37,598 square foot health and fitness centre on George Eastham Avenue, Stoke-on-Trent, located at the junction of the A50 and A500, which links to junctions 15 and 16 of the M6. The property is adjacent to the Stoke City Football Club stadium, a Holiday Inn, Harvester and Audi, Lexus and Volkswagen car dealerships. The unit is let to Greens Health & Fitness Limited (trading as Nuffield Health) on a lease expiring on 18 April 2025, with a current passing rent of £349,209 per annum, reflecting a net initial yield of 6.75%. Richard Shepherd Cross says that the tenant has demonstrated a strong commitment to the location and they believe there is reversionary potential at the 2020 rent review.
Custodian REIT acquires properties in Liverpool and Stoke-on-Trent : CREI