Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce a further property purchase.
The Company has acquired a 46,550 sq ft industrial unit on Team Valley Trading Estate, Gateshead, the north east’s leading mixed-use business park at junction 68 of the A1, three miles from Newcastle upon Tyne. Nearby occupiers include Booker, Royal Mail and Sainsbury’s.
The unit is let to Worthington Armstrong (UK) Limited on a lease expiring on 25 August 2026. Current passing rent is £279,400 per annum reflecting a net initial yield1 of 6.73%.
The agreed purchase price of £3.9 million was funded from the Company’s existing debt facilities, resulting in net gearing2 increasing to 21.6% 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 the north east’s prime industrial park, let to a market leading manufacturer. The tenant has been in occupation for over 20 years, and carried out an expansion in 2016, highlighting its ongoing commitment to the site.”