8th Mar 2016 10:09
LONDON (Alliance News) - Custodian REIT, a London-listed UK property investment company, on Tuesday said it has acquired St Catherine's Leisure Park in Perth, Scotland, for GBP4.5 million.
The property comprises three units let to Bannatyne Fitness Ltd, Scotco (Eastern) Ltd, which trades as KFC, and The Restaurant Group (UK) Ltd, which trades as Frankie and Benny's. It is adjacent to St Catherine's Retail Park, which hosts the likes of Curry's PC World, Dunelm Mill, Halfords, Home Bargains, Maplin, Sports Direct and T K Maxx.
The units' leases expire between July and August 2026 with a current passing rent of GBP389,115 per annum in aggregate, reflecting a net initial yield of 8.17%.
"All three tenants have rent reviews this year and we believe the properties have reversionary potential. The park is well located next to St Catherine's Retail Park, making this a sought after location for retail and leisure operators alike. Plans for a nearby cinema development, if completed, will further strengthen the area," Richard Shepherd-Cross, managing director of Custodian Capital, the company's investment manager, said.
The acquisition was financed with Custodian REIT's existing debt facilities, meaning that the company's loan to value ratio has increased to 20.2% from 20.1% previously.
Shares in Custodian REIT were up 1.2% at 108.50 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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