Custodian REIT Acquires Warehouse in Ashton-under-Lyne, UK.
M2 EQUITYBITES-July 27, 2017-Custodian REIT Acquires Warehouse in Ashton-under-Lyne, UK
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27 July 2017 - UK property investment company Custodian REIT (LSE: CREI) has acquired a 30,404 sq ft retail warehouse on Snipe Retail Park, Ashton-under-Lyne, adjacent to junction 23 of the M60, the company said.
The unit is occupied by B and M Bargains Ltd., with nearby retailers including B and Q, Halfords, Home Bargains, Dunelm, Argos and Harveys.
This unit's lease expires on 8 January 2032 with a current passing rent of GBP 421,330 per annum, reflecting a net initial yield of 6%.
The agreed purchase price of GBP 6.6 m (USD 8.67m) was funded from the company's existing cash resources, resulting in net gearing2 increasing to 20.8% loan to value.
Custodian REIT plc is a UK real estate investment trust, which listed on the main market of the London Stock Exchange on 26 March 2014.
Its portfolio comprises properties predominantly let to institutional grade tenants on long leases throughout the UK and is characterised by properties with individual values of less than GBP 10m at acquisition.
The company offers investors the opportunity to access a diversified portfolio of UK commercial real estate through a closed-ended fund.
By targeting sub GBP 10m lot size, regional properties, the company intends to provide investors with an attractive level of income with the potential for capital growth.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Jul 27, 2017|
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