18 November 2014
Custodian REIT purchase petrol station in Gillingham
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 £57.5 million.
Custodian REIT has acquired a petrol filling station and convenience store site at Beechings Way, Gillingham, on the A289 dual-carriageway, which leads to the Medway tunnel. The property is let to Somerfield Stores Limited (trading as the Co-operative) who have been at the premises for the last 11 years.
The property is let on a 25 year lease expiring on 15 April 2028 with no breaks at a current rent of £268,500 per annum, reflecting a net initial yield of 8.32%.
The purchase consideration of £3.05 million was funded from the company’s cash resources following a placing of shares in October 2014 which raised £25.0 million (before costs and expenses). Custodian REIT has no debt and £3 million remaining cash to deploy from the placing monies raised.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited Custodian REIT’s external fund manager), said:
“We understand that 2013 was the first year since 1966 that the number of petrol filling stations in the UK has increased. This fact, combined with the huge expansion in convenience retailing, makes a petrol filling station with a large forecourt and a busy convenience store a compelling acquisition.”
For more information on our properties, please visit the REIT’s portfolio.
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