11 July 2014
Custodian REIT property portfolio grows as builders merchant is acquired in Castleford
Custodian REIT is pleased to announce the completion of a further property purchase, bringing the total funds invested to £17.35 million.
The company has acquired a brand new 12,940 sq ft trade counter unit on Willowbridge Lane, Castleford. Willowbridge Lane (A655) is the main arterial route into Castleford from Junction 31 of the M62 motorway, half a mile to the south.
The property is operated as a builders merchant and is let to MKM Building Supplies Limited on a 20 year lease, without break, expiring on the 7 January 2034. The lease provides for five yearly rent reviews, with rental increases linked to the retail prices index (RPI). The property is let at an initial rent of £110,000 per annum, reflecting a net initial yield of 6.45%. The purchase consideration of £1.61 million was funded from the company’s own cash resources.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited), said:
“This acquisition brings both long term, index-linked income from a purpose built trade counter unit and further portfolio diversification. The site also promises to be an excellent location for the tenant, where they should benefit from trade business and passing retail customers.”
For further information on our investments, please visit our Custodian REIT property portfolio.
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