Custodian REIT Plc - Purchase of Property
The Company has acquired a high street retail property in Chester, let to Signet Trading Limited (t/a Ernest Jones) and Feldale Retail Limited (t/a Lakeland). The property is located in the city centre on the pedestrianised Eastgate Street, adjoining two other units in the Company's portfolio. Nearby occupiers include Cath Kidston, Jack Wills, Kuoni Travel, H Samuel, Fat Face and Accessorize.
Leases expire in September 2021 and September 2026 with a combined current passing rent of £140,000 per annum reflecting a net initial yield of 4.78%.
The agreed purchase price of £2.75 million was funded from the Company's existing debt facilities, resulting in net gearing1 of 17.6% loan to value.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's discretionary investment manager), said:
"We are delighted to have acquired this prominent unit within Chester's prime retail pitch. Chester is a leading destination for retail in the region due to a thriving tourism industry and excellent transport links. The unit adjoins two properties held by Custodian REIT, providing a 'marriage value' which we expect to result in an overall valuation increase for the combined lot."