23rd Mar 2015 08:20
LONDON (Alliance News) - Custodian REIT PLC Monday said it is acquiring a distribution unit on the Normanton Industrial Estate in West Yorkshire, England, for GBP4.25 million.
The unit, which is let to Your Electrical Supplies, Service and Solutions (B) Ltd, totals 63,240 square feet.
The UK property investor said that total passing rent amounts to GBP282,300 a year, giving a net initial yield of 6.28%. There will be a review of the rent on in June 2017, while the lease expires in the same month of 2022.
"Despite an initial yield of 6.28% we believe the property will show a reversionary yield of circa 7% following the 2017 rent review, as prevailing market rents for prime distribution units in this location are comfortably in excess of the current passing rent," Richard Shepherd-Cross, the managing director of Custodian Capital Ltd, the fund manager of the property investment company, said in a statement.
Custodian REIT shares were untraded early morning Monday. The stock closed at 109.50 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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