19 December 2018Custodian REIT acquires 14,926 sq ft Volkswagen car dealership in Loughborough
Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce a further property purchase. The Company has acquired a 14,926 sq ft Volkswagen car dealership, situated prominently on Belton Road, the prime dealership, trade and retail warehouse location in Loughborough, one mile from the town centre and three miles from junction 23 of the M1. Car dealerships in the vicinity include Peugeot, Toyota, Nissan, Inchcape Mercedes-Benz, Vauxhall and Kia. The property is let to Lister Group Limited on a lease expiring on 30 November 2038, subject to a break in 2028, with a current passing rent of £160,000 per annum, reflecting a net initial yield¹ of 6.37%. The lease benefits from rent reviews linked to RPI, subject to a cap of 3.0% per annum rental growth. The agreed purchase price of £2.36 million was funded from the Company’s existing debt resources, resulting in net gearing² increasing to 25.7% loan to value. Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s discretionary investment manager), said: “This opportunity in Loughborough’s prime motor trade pitch, let to a strong tenant, on a long-term lease, including RPI linked rent increases, provides income security and a strong reversionary yield. We believe the property’s prime location and low passing rent will provide the long-term opportunity that meets the investment criteria of Custodian REIT.” ¹ Passing rent divided by valuation plus estimated purchasers’ costs. | Latest News12 Jun 2025 Strong operational performance driving earnings growth and portfolio valuation uplift 02 Jun 2025 All-share Acquisition of £22m Property Portfolio 15 May 2025 Disposal of Properties at or above book value 08 May 2025 19 Mar 2025 Presentation: Richard-Shepherd Cross presents at ‘Shares Magazine’ event on 12 March 2025 ![]() |