Custodian REIT purchases Lincoln property and disposes of Swansea retail unit
18 September 2015
Custodian REIT, the UK property investment company, is pleased to announce a further property purchase and a property disposal.
The Company has acquired a 19,493 sq ft trade counter unit on Stephenson Road, North Hykeham, three miles south-west of Lincoln and one mile from the A46.
The unit is let to MKM Building Supplies Limited on a lease expiring on 10 June 2022. Net passing rent is £169,711 per annum, reflecting a net initial yield of 6.90%, with a fixed rental uplift to £192,012 per annum from June 2017 reflecting a reversionary yield of 7.81%. Adjacent occupiers include Lindum Group, Lincolnshire County Council and Scott Storage.
The agreed purchase price of £2.325 million was funded from the Company’s existing credit facilities, with net borrowings following the acquisition of 16.0% loan to value.
“The lease carries a fixed uplift in 2017 and the tenant has demonstrated its commitment to the location. The site is prominently located in the principal commercial district of Lincoln bordered by the B1190, A1434 and B1003, providing good road links. Land adjacent to the property has seen the recent development of purpose built units, emphasising the strength and demand for good quality property in this strategic area”.
The Company has disposed of a 2,313 sq ft retail unit located on Union Street, Swansea for a consideration of £0.5 million, £0.1 million above its 19 June 2015 acquisition value. The property was acquired as part of a portfolio, but is regarded as being subscale for the Company. The sale proceeds will be used to help fund acquisitions which better fit the Company’s investment strategy.
18 Jul 2017
10 Mar 2017
23 Dec 2016
23 Dec 2016
25 Nov 2016