Custodian REIT has announced that it has acquired a block of six retail properties and two restaurants in Shrewsbury town centre. The properties are occupied by Paperchase, Holland & Barrett, Azzuri Restaurants (t/a ASK), Edinburgh Woollen Mill, Thomas Cook, Greggs, Sam’s Club (t/a House of the Rising Sun), Whittards and William Hill. The company says that leases expire between 15 January 2018 and 23 June 2038, which represents a weighted average unexpired lease term (to first break or expiry) of 6.0 years. The current passing rent is £667,300 per annum reflecting a net initial yield of 6.07%. The agreed purchase price of £10.3m mllion was funded from the Company’s existing debt facilities, resulting in net gearing increasing to 19.6% loan to value.
Richard Shepherd-Cross, Managing Director of Custodian Capital (the Company’s investment manager), says that they are delighted to have acquired what he describes as a very prominent block in Shrewsbury’s prime retail pitch. He says that the town benefits from a large and affluent catchment population and is a strong draw for local and tourist visitors alike. He also says that the town centre has a very high occupancy rate, many leading national multiple retailers and a thriving independent retailer mix, which, in his view, demonstrates its strength and vitality as a retail destination.
Custodian REIT acquires prominent retail block in Shrewsbury town centre for £10.3m : CREI