Custodian REIT is pleased to announce a further property purchase.
The Company has acquired a 36,168 sq ft retail warehouse in Leighton Buzzard, located 10 miles from junction 12 of the M1. Nearby occupiers include Tesco, Aldi and Waitrose.
The property is let to Homebase Limited on a lease expiring on 22 December 2023 with a current passing rent of £524,436 per annum, reflecting a net initial yield of 6.91%.
The agreed purchase price of £7.12 million was funded from the Company’s existing debt facilities, resulting in net gearing* increasing to 21.7% loan to value.
“We are delighted to have secured this property let to a well-known retailer on a long-term lease. The property is centrally located in Leighton Buzzard adjacent to a Tesco supermarket. The town is experiencing significant growth with 1,330 dwellings currently under construction in the area and a further 2,500 proposed in the next 10 years, which is very positive for retail and commercial growth in the town.”
*Gross borrowings less unrestricted cash divided by last published property portfolio valuation.