Custodian REIT is pleased to announce a further property purchase.
The Company has acquired three units within the 33,270 sq ft Coypool retail park in Plymouth, near the town centre and adjacent to the A38 Devon Expressway. The units are occupied by Oak Furniture Land, SCS and McDonald’s, with nearby retailers including Bensons for Beds, B&M, Harveys Furniture, Next Home and DFS.
The units’ leases expire on 6 June 2025, 13 October 2026 and 28 September 2031 respectively with a total passing rent of £538,226 per annum, reflecting a net initial yield1 of 6.74%.
The agreed purchase price of £7.487 million was funded from the Company’s existing debt resources, resulting in net gearing2 increasing to 18.3% 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 secured this prominently located property within Plymouth’s principal retail warehouse location. SCS and Oak Furniture Land have both installed comprehensive mezzanine trading areas and all three tenants have recently committed to the location by agreeing to long term leases. This acquisition further diversifies our tenant mix through the addition of three strong, nationally established tenants.”
1 Portfolio passing rent divided by portfolio valuation plus estimated purchasers’ costs.
2 Gross borrowings less unrestricted cash divided by last published property portfolio valuation.