22 February 2016

Custodian REIT acquires 35,000 sq ft retail warehouse in Banbury

Custodian REIT is pleased to announce a further property purchase.

Property purchase

The Company has acquired a 34,955 sq ft retail warehouse in Banbury, located one mile from junction 11 of the M40 and within walking distance of the town centre and railway station. Nearby occupiers include Wickes, Halfords, Homebase, Dunelm Mill, Topps Tiles and Staples.

The property is let to B&Q Plc on a lease expiring on 24 March 2022 with a current passing rent of £478,842 per annum, reflecting a net initial yield of 6.94%.

The agreed purchase price of £6.525 million was funded from the Company’s existing debt facilities, resulting in net borrowings increasing to 20.1% 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 let to B&Q which has been in occupation for 29 years. The unit is prominently located in an established bulky goods retail warehouse pitch, near the Banbury Cross Retail Park. The development of a proposed 42,000 sq ft Waitrose on land opposite will further strengthen the location.”