Custodian REIT acquires 44,643 sq ft distribution unit on Heartlands Business Park, Daventry
Custodian REIT is pleased to announce a further property purchase.
The Company has acquired a 44,643 sq ft distribution unit on Heartlands Business Park, Daventry, located within 10 miles of junction 16 of the M1 and the M45. Nearby occupiers include Wincanton, Wetherspoons, Ceva, Netto and Hankook.
The unit is let to Cummins Limited on a lease expiring on 15 July 2019. Current passing rent is £221,045 per annum reflecting a net initial yield of 6.75%.
The agreed purchase price of £3.08 million was funded from the Company’s existing debt facilities, resulting in net gearing increasing to 23.1% loan to value.
“We are delighted to have acquired another modern industrial unit which we believe has strong reversionary potential. Daventry is an established, Midlands distribution location due to its excellent motorway and A-road access. The completion of the current Daventry link road project will improve access to junction 16 of the M1, further enhancing the appeal of the location to current and prospective tenants.”