Custodian REIT is pleased to announce a further property purchase.
The Company has acquired 44,606 sq ft of retail warehousing on County Road Retail Park, Swindon, near the town centre and railway station and within five miles of the M4. The site comprises two units let to Go Outdoors Limited and B & M Bargains Limited, with nearby occupiers including Tesco, Wickes, Lidl and T K Maxx.
The units’ leases expire on 26 May 2021 and 8 February 2025 respectively with a total passing rent of £525,000 per annum, reflecting a net initial yield of 6.86%.
The agreed purchase price of £7.18 million was funded from the Company’s existing cash resources, resulting in net gearing increasing to 15.1% loan to value.
“We are delighted to have secured this prominent property adjacent to Tesco Extra and located in Swindon’s highest density catchment area. B&M Bargains and Go Outdoors are both occupiers who are dominating their sub-markets and with a weighted average unexpired lease term of 7.5 years and unrestricted open A1 planning consent (including food) the units provide long-term income and flexibility regarding future use.”