Custodian REIT is pleased to announce a further property purchase.
The Company has acquired a 30,404 sq ft retail warehouse on Snipe Retail Park, Ashton-under-Lyne, adjacent to junction 23 of the M60. The unit is occupied by B&M Bargains Limited, with nearby retailers including B&Q, Halfords, Home Bargains, Dunelm, Argos and Harveys.
The unit’s lease expires on 8 January 2032 with a current passing rent of £421,330 per annum, reflecting a net initial yield of 6.00%.
The agreed purchase price of £6.6 million was funded from the Company’s existing cash resources, resulting in net gearing2 increasing to 21.0% 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 secured this prominently located property within the Snipe Retail Park, a well established Manchester out of town retail park. B&M is a strong nationally established tenant which dominates its sub-market. The unit has recently undergone a comprehensive refurbishment with B&M agreeing to a long-term lease with a 14.5 years unexpired term, demonstrating its commitment to the unit and location.”
1 Passing rent divided by purchase price plus assumed purchasers’ costs.