16 June 2014

Custodian REIT boost property portfolio with distribution warehouse

Custodian REIT plc is pleased to announce the completion of a third property purchase following its initial placing and admission to the Main Market of the London Stock Exchange on 26 March 2014.

The company has acquired a modern distribution warehouse on the south side of Biggleswade, adjacent to the A1 on the busy Stratton Business Park. The property comprises a 49,919 sq ft distribution warehouse, with 10 metre eaves, on a 2.87 acre site. Other occupiers on the 48 acre business park include Bibby Distribution, iCandy, Jordans, Kramp and Liebherr.

The property is let to Turpin Distribution Services Limited. Turpin has been a tenant since the building was constructed in 2004 and has just agreed a new five year lease expiring on 24 March 2019. The property is let at a passing rent of £300,000 per annum, reflecting a net initial yield of 7.5%. The purchase consideration of £3.785 million was funded from the company’s own cash resources.

Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited, which is Custodian REIT plc’s external fund manager, said:

“This modern distribution warehouse, in a strategic location, offers a high-specification warehouse to its tenant and in return should generate stable, long-term income for Custodian REIT and support the target return.”

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