Custodian REIT is pleased to announce a further property purchase.
The Company has acquired a 37,598 sq ft health and fitness centre on George Eastham Avenue, Stoke-on-Trent, located at the junction of the A50 and A500 which links to junctions 15 and 16 of the M6. The property is adjacent to the Stoke City Football Club stadium, a Holiday Inn, Harvester and Audi, Lexus and Volkswagen car dealerships.
The unit is let to Greens Health & Fitness Limited (trading as Nuffield Health) on a lease expiring on 18 April 2025, with current passing rent of £349,209 per annum reflecting a net initial yield of 6.75%.
The agreed purchase price of £4.855 million, was funded from the Company’s existing debt facilities, resulting in net gearing increasing to 18.0% loan to value.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s discretionary investment manager), said:
“We are delighted to have acquired this high specification, purpose built health and fitness centre in an established and prominent location with more than eight years remaining on the lease. The tenant has demonstrated a strong commitment to the location and we believe there is reversionary potential at the 2020 rent review. This property adds further diversification to the portfolio.”