Custodian REIT Plc - Purchase of Property in Sheldon
The units' leases expire on 28 September 2022, 26 September 2026 and 28 September 2027 respectively, with a total passing rent of £361,037 per annum reflecting a net initial yield1 of 6.64%.
The agreed purchase price of £5.1 million was funded from the Company's existing cash resources, resulting in net gearing2 increasing to 19.6% 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 secured this prominently located property within Sheldon's retail pitch and on one of the main arterial routes into Birmingham city centre. Halfords has recently signed a reversionary lease, demonstrating their dedication to the location. With strong occupier interest being experienced at the proposed Sheldon Retail Park development, the area is showing signs of strong future growth potential."