06/09/2021 | Press release | Distributed by Public on 06/09/2021 02:09
Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce a property purchase.
The Company has acquired five industrial units covering an aggregate 40,419 sq ft on Knowsley Business Park, Liverpool, adjacent to junction 4 of the M57. The units are occupied by Portakabin, Green Thumb, Central Electrical Armature and Med Imaging with a weighted average unexpired term to first break or expiry of 4.0 years.
The units have an aggregate passing rent of £214,117 per annum, reflecting a net initial yield1 of 5.74%.
The agreed purchase price of £3.5 million was funded from the Company's existing debt facilities, resulting in net gearing2 increasing to 25.4% 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 these modern assets in an area with strong evidence of increasing industrial rents, offering short-medium term asset management opportunities.'
1 Passing rent divided by purchase price plus assumed purchasers' costs.
2 Gross borrowings less unrestricted cash divided by last published property portfolio valuation.