Custodian REIT is pleased to announce a further property purchase.
The Company has acquired a 36,023 sq ft distribution unit on Cambridge Road Industrial Estate, Bedford, located 11 miles from junction 13 of the M1 and eight miles from the A1. Nearby occupiers include ASDA, Sainsbury’s, Argos, DHL and Fujifilm.
The unit is let to Heywood Williams Components Limited on a lease expiring on 7 April 2022. Current passing rent is £234,600 per annum reflecting a net initial yield of 6.78%.
The agreed purchase price of £3.25 million was funded from the Company’s existing debt facilities, with net gearing increasing to 23.7% loan to value and £32.0 million now deployed from the Company’s £35.0 million revolving credit facility.
“We are delighted to have added another modern industrial unit to our portfolio, which we believe has reversionary potential. IDI Gazeley have recently acquired an adjacent plot of land to develop a 240,000 sq ft warehouse, following recent developments by ASDA, Movianto and Lantmannen Unibake. The ongoing development in this area highlights its strength as a distribution centre and the consistent demand for industrial space from new and existing tenants.”