22 December 2014
Custodian REIT acquires the Discovery Retail Park in Grantham
Custodian REIT is pleased to announce a further property purchase, bringing the total funds invested following its initial placing and admission to the Official List on 26 March 2014 to £81.2 million.
The Company has acquired the 24,322 sq ft Discovery Retail Park on London Road, Grantham, comprising three retail warehouse units let to Carpetright plc, Poundstretcher Limited and Laura Ashley Limited. The park has 92 onsite parking spaces and is close to the town centre, railway station and the A1. Occupiers in the immediate vicinity include B&Q, M&S Simply Food, Halfords, Farmfoods, Topps Tiles and Majestic Wine.
The units’ leases expire on 11 April 2020, 24 December 2020 and 30 May 2021 with a total passing rent of £324,286 per annum, reflecting a net initial yield of 7.00%.
The agreed purchase price of £4.375 million was funded from the Company’s existing facilities, with total funds of £12.5 million now deployed from the Company’s revolving credit facility. Borrowings have increased to 12.6% loan to value, in line with the stated investment strategy of a target gearing ratio of 25% loan to value.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s external fund manager), said:
“Discovery Retail Park is situated on London Road, Grantham’s prime out of town retail pitch. It has an excellent parking ratio and the recent opening of an adjacent M&S Simply Food demonstrates the strength of the location.”
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