22 Feb 2012

Custodian Capital completes funding of prime property partnership in Surrey

Custodian Capital, which is part of the Mattioli Woods plc group of companies, has recently completed the funding of its latest property partnership at 105-115 Brighton Road, Redhill, Surrey. Investors raised over £1.7 million in denominations of between £10,000 and £50,000 to fund this car showroom investment, let to Honda Motor Europe Limited. The property occupies a prominent location on Brighton Road (A23), a short distance from Redhill railway station and the town centre. Nearby occupiers include Mercedes Benz, Ford, Halfords, Pets at Home, Brewers and Majestic Wine Warehouse. In addition there are a number of new residential developments benefiting from this highly accessible location. The property offers secure medium-term income and long-term redevelopment opportunities.

The partnership was structured as an income partnership with forecast income distributions of over 6.65% per annum, subject to the settlement of an outstanding rent review, from year two onwards. The partnership was launched in late December and was fully subscribed by the end of January, demonstrating the strong demand for syndicated commercial property. The high income returns and long, secure and predictable income derived from commercial property remains popular in context of the low returns and volatility of the wider economy.

Custodian Capital is currently raising funds for a new property opportunity in Macclesfield, Cheshire. The property comprises two retail warehouse units let to Travis Perkins (Properties) Limited t/a Tile Giant and Dreams plc for ten and nine years respectively in this affluent Cheshire town. The retail warehouse sector of the commercial property market has been a perennially strong performer and in recent years rents have been much more resilient to the economic turmoil than on the high street. Custodian Capital has a pipeline of opportunities with tenants such as Royal Mail Group Limited, Premier Inn Hotels Limited, Prezzo plc and an NHS Trust. For further information on this, please click here.