Custodian REIT is pleased to announce a further property purchase.
The Company has acquired the 51,956 sq ft Wellington Road Retail Park in Burton upon Trent, adjacent to the busy A38. The site comprises three units let to Wickes, The Range and HSS Hire and has 208 parking spaces. Nearby retailers include B&Q and Burger King.
The units’ leases expire on 28 September 2028, 30 October 2031 and 29 September 2018 respectively, with a total passing rent of £580,681 per annum reflecting a net initial yield of 6.45%.
The agreed purchase price of £8.45 million was funded from the Company’s existing debt facilities, resulting in net gearing increasing to 20.2% 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 retail park within Burton’s main out of town retail pitch. 35% of the property’s rent is subject to fixed uplifts and its weighted average unexpired lease term of over 11 years adds secure income to the portfolio. The HSS unit, which represents 7% of the asset’s aggregate rent, is unoccupied and provides an excellent opportunity to drive additional value by developing that part of the site.”