16th Feb 2026 12:39
(Alliance News) - Custodian Property Income REIT on Monday said it has bought a GBP35.9 million family property portfolio via the purchase of Grove Court Properties Holdings Ltd.
The Leicester, England-based real estate investment trust said the transaction provides it with a "highly complementary portfolio of mixed-use investment properties" with around 97% occupancy.
The portfolio has an average lot-size of GBP5.3 million. The trust said the seven assets in the portfolio are located in close proximity to the M25 motorway on the eastern outskirts of Greater London.
It generates an annual aggregate passing rent of GBP2.7 million, which will add around 6% to the firm's annual rent roll, with a net initial yield of 6.8%.
"During its due diligence ahead of the acquisition, the investment manager identified a number of opportunities to drive further value from the investment portfolio by utilising its asset and portfolio management expertise to increase rental income from lease events," Custodian Property Income REIT said.
The acquisition will be satisfied through the issue of 24.1 million shares in the company on completion, calculated on an adjusted net asset value basis.
A further 800,000 shares will be issued on finalisation of completion accounts, which is expected in the next three to six months.
A cash overage payment based on the outcome of a pending rent review and lease renewal, of around GBP300,000, will be paid during the next three to six months, while GBP9.0 million in cash will be paid on completion.
"The addition of this portfolio will enhance tenant diversification and provide further defensive income to drive earnings, while reducing our ongoing charges ratio and maintaining the balance sheet strength," said Chair David MacLellan.
"In a short space of time, this innovative strategy of using our shares to acquire family held property holdings has proved to be an effective way to achieve scale. We will continue to pursue further opportunities in this space, enabling family-owned businesses to benefit from our income focused strategy alongside existing shareholders."
Shares in Custodian Property Income REIT were up 0.3% at 89.30 pence on Monday afternoon in London.
By Michael Hennessey, Alliance News reporter
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