Custodian REIT (CREI) has announced that it has acquired the 23,007 square foot Wells Green Retail Park in Sheldon, five miles from Birmingham city centre on the busy A45 Coventry Road. The agreed purchase price of £5.1 million was funded from the Company’s existing cash resources, resulting in net gearing2 increasing to 19.6% loan to value.
Wells Green Retail Park
The site comprises three units occupied by Dreams, Pets at Home and Halfords, with nearby retailers including Morrisons, Tesco, Topps Tiles and Aldi. The units’ leases expire on 28 September 2022, 26 September 2026 and 28 September 2027 respectively, with a total passing rent of £361,037 per annum reflecting a net initial yield1 of 6.64%.
Richard Shepherd-Cross, Managing Director of Custodian Capital Limited says that, “Halfords has recently signed a reversionary lease, demonstrating their dedication to the location. With strong occupier interest being experienced at the proposed Sheldon Retail Park development, the area is showing signs of strong future growth potential.”
About Custodian REIT
Custodian REIT is a UK real estate investment trust, which listed on the main market of the London Stock Exchange on 26 March 2014. It says that its portfolio comprises properties predominantly let to institutional grade tenants on long leases throughout the UK and is characterised by small lot sizes, with individual property values of less than £10 million at acquisition.
The Company describes itself as offering investors the opportunity to access a diversified portfolio of UK commercial real estate through a closed-ended fund. It says that, by targeting smaller lot size properties, it intends to provide investors with an attractive level of income with the potential for capital growth.
Custodian Capital Limited is the discretionary investment manager of the Company.
Custodian REIT acquires Wells Green Retail Park, Sheldon, for £5.1m : CREI