Custodian REIT has announced the purchase of a 30,404 square foot retail warehouse on Snipe Retail Park, Ashton-under-Lyne, adjacent to junction 23 of the M60. The unit is occupied by B&M Bargains Limited, with nearby retailers including B&Q, Halfords, Home Bargains, Dunelm, Argos and Harveys. The unit’s lease expires on 8 January 2032 with a current passing rent of £421,330 per annum, reflecting a net initial yield of 6.00%, and the £6.6 million purchase price was funded from the Company’s existing cash resources. The company says that the transaction has resulted in its net borrowing increasing to 20.8% loan to value.
Richard Shepherd-Cross, Managing Director of Custodian Capital (the Company’s investment manager), says that the unit has recently undergone a comprehensive refurbishment with B&M agreeing to a long-term lease with a 14.5 years unexpired term. He says that this demonstrates B&M’s commitment to the unit and location.
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 Ashton-under-Lyne retail warehouse for £6.6m : CREI