20 June 2014

Custodian REIT adds warehouse to its growing property portfolio

Custodian REIT, which is managed by Custodian Capital Limited, is pleased to announce the completion of a further purchase to its developing property portfolio.

Custodian REIT acquired a warehouse unit on Hamilton International Park, 12 miles south of Glasgow. The property comprises a 38,164 sq ft warehouse unit on a 2.41 acre site. It also has access to an 80 space car park and loading yard.

Other occupiers on the 76 acre business park include Eden Springs, South Lanarkshire Council, HSBC, John Lewis Partnership, Scottish & Universal Newspapers, Scottish Power and ICM Computer Group.

Since the property was constructed in 1998, the expiry of the initial 15 year lease has experienced only a four month period of vacancy before being let to Ichor Systems Limited. Ichor has agreed a ten year lease expiring on 7 May 2024, without a break. The property is let at a passing rent of £175,000 per annum, reflecting a net initial yield of 9.01%. The purchase consideration of £1.835 million was funded from the company’s own cash resources.

Commenting on the acquisition, Richard Shepherd-Cross, Managing Director, said:

“This modern warehouse unit has been acquired at close to vacant possession value, but benefits from a new 10 year lease to a fast-growing company. I believe there is a lack of speculative warehouse development in the greater Glasgow area, giving this property the capacity for both rental and capital growth in the short to medium term.”

For more information on Custodian REIT’s properties, please take a look at their diversified portfolio.