Custodian REIT is pleased to announce a further property purchase.
The Company has acquired a 92,672 sq ft distribution unit on Centrum 100 Business Park, Burton upon Trent, located close to the A38 and A50 with links to the M1, M6 and M42. Nearby occupiers include Boots, DHL, Clipper Logistics and Palletforce.
The unit is let to Kings Road Tyres and Repairs Limited on a lease expiring on 26 July 2031, subject to a tenant’s option to break in 2021. Current passing rent is £509,696 per annum reflecting a net initial yield of 6.77%.
The agreed purchase price of £7.06 million was funded from the Company’s existing debt facilities, resulting in net gearing increasing to 22.6% loan to value.
“We are delighted to have acquired this modern unit located in the ‘Golden Triangle’ of UK distribution. The Midlands is experiencing significant demand for high quality units with good communication links, demonstrated by the strong list of occupiers on this park. We expect these factors to lead to high demand and future rental growth.”