18 April 2016

Custodian REIT acquires a high street retail unit in Chester

Custodian REIT is pleased to announce a further property purchase.

The Company has acquired a high street retail unit in Chester, let to TSB Limited and Ciel (Concessions) Limited (trading as Chesca). The property is located in the city centre on the pedestrianised Eastgate Street near Cath Kidston, Jack Wills, Kuoni Travel, H Samuel, Fat Face and Jaeger.

The tenants’ leases expire between September 2019 and March 2020 with a total passing rent of £128,000 per annum, reflecting a net initial yield of 5.87%.

The agreed purchase price of £2,050,000 was funded from the Company’s existing debt facilities, resulting in net borrowings increasing to 18.8% 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 located within the prime retail pitch, adjoining an existing Custodian REIT property. This acquisition enhances the Company’s existing holding in the city of Chester which stands out as a dominant retail centre in the region.”