Custodian REIT is pleased to announce a further property purchase.
The Company has acquired a 43,370 sq ft distribution unit on Houston Industrial Estate, Livingston, one of the most established industrial centres in Scotland at junction three of the M8, 15 miles from Edinburgh and 30 miles from Glasgow. Nearby occupiers include Booker, Iceland and Hays.
The unit is let to A Share & Sons Limited (trading as SCS) on a lease expiring on 2 October 2022. The agreed purchase price reflects a net initial yield1 of 7.5%, subject to agreement of an ongoing rent review.
The agreed purchase price of £2.59 million was funded from the Company’s existing debt facilities, resulting in net gearing2 increasing to 19.4% 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 unit located on one of Scotland’s prime distribution parks and let to a market leading retailer. The unit is SCS’s only distribution location in Scotland and the tenant is committed to the site.”
1 Passing rent divided by purchase price plus assumed purchasers’ costs.
2 Gross borrowings less unrestricted cash divided by last published property portfolio valuation.