Custodian REIT has acquired a 22,663 sq ft retail warehouse on Southbrook Retail Park, Gloucester, near the town centre and within three miles of the M5. The site comprises two units occupied by Magnet and Smyths Toys, with nearby retailers including Halfords, B&M Bargains, Lidl, The Range and McDonalds.
The units’ leases expire on 9 September 2024 and 28 September 2021 respectively with a total passing rent of GBP373,100 per annum, reflecting a net initial yield of 7.41%. The agreed purchase price of GBP4.725 million was funded from the Company’s existing cash resources, resulting in net gearing(1) increasing to 15.7% loan to value.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s discretionary investment manager), said: “We are delighted to have secured this prominently located property within Gloucester’s prime out of town retail pitch. Magnet and Smyths Toys are both strong nationally established tenants who add to Custodian REIT’s retail warehouse portfolio. Magnet has been in occupation since the unit was constructed and Smyths Toys has recently undertaken a substantial fit out of the property demonstrating its commitment to the location.”
CREI : Custodian buys Gloucester retail warehouse