Custodian REIT is pleased to announce a further property purchase.
The Company has acquired a high street retail unit in Cardiff let to Sportswift Limited (trading as Card Factory) and Specsavers Optical Superstores Limited. The property comprises two well configured retail units with upper floor sales and ancillary accommodation, located in the prime retail pitch of Queen Street. Nearby shops include Next, Zara, Marks & Spencer, Boots and Top Shop.
The tenants’ leases expire on 26 March 2020 and 23 June 2032 respectively with a total passing rent of £410,100 per annum, reflecting a net initial yield of 7.46%.
The agreed purchase price of £5.16m was funded from the Company’s existing debt facilities, resulting in net gearing increasing to 18.7% 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 property located within the prime retail pitch of Cardiff city centre. Its weighted average unexpired lease term of over nine years adds secure income to the portfolio and the unoccupied upper floors provide an opportunity to drive additional value.”