The Company has acquired a 35,000 sq ft retail warehouse on Transit Way Retail Park, Plymouth, near the A38 Devon Expressway. The site comprises two units occupied by Magnet and B&M, with nearby retailers including Argos, Tesco, Lidl and Matalan.
The units’ leases expire on 26 January 2027 and 20 August 2027 respectively with a total passing rent of £400,000 per annum, reflecting a net initial yield of 6.79%.
The agreed purchase price of £5.525 million was funded from the Company’s existing cash resources, resulting in net gearing increasing to 21.1% loan to value.
Commenting on the acquisition, Richard Shepherd-Cross, ManagingDirector of Custodian Capital Limited (the Company’s discretionary investment manager), said:
“We are delighted to have secured this prominently located property within an established Plymouth out of town retail park. Magnet and B&M are strong nationally established tenants which add to Custodian REIT’s retail warehouse portfolio. Magnet has been in occupation since the property was constructed and a recent comprehensive refurbishment, which split the property into two smaller units, has made it very attractive in the modern retail environment.”