28th Aug 2014 09:14
LONDON (Alliance News) - Custodian REIT PLC and Hibernia REIT PLC Thursday said they have taken steps to reshape their respective portfolios.
Custodian REIT said it has acquired a 80,000 square foot manufacturing facility situated on White Rose Way, Doncaster in a deal worth GBP4.6 million.
The property is let to Portola Packaging Ltd, a division of Silgan Holdings Inc, a manufacturer of plastic lids, closures and containers for the dairy, juice and food industries.
Custodian said the property is let on a 20-year lease expiring in July 2021 with no breaks at a current rent of GBP355,000 a year, reflecting a net initial yield of 7.25%.
Meanwhile, Hibernia REIT said it remains in exclusive talks to acquire Cumberland House, a seven-storey 112,000 square feet office building located close to Merrion Square in Dublin and pursuant to this has agreed to provide the owners with a short-term loan of EUR38 million.
The loan is fully secured on Cumberland House and has an interest rate of 6% a year.
Hibernia also said it has signed a contract with JJ Rhatigan & Company for the fit-out and completion of Hibernia's 213 partially-completed apartments in Dundrum, Dublin.
JJ Rhatigan is a well-known building contractor in Ireland, with a specialism in the completion of new and part-built residential multi-unit developments.
It is expected that the first apartments will be available to let by mid-2015 and that the project will be fully completed by the end of 2015. The total cost to complete the apartments is expected to be less than EUR25 million
Custodian REIT shares were quoted down 0.7% at 109.50 pence Thursday morning, while Hibernia shares were quoted up 0.4% at EUR1.11.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
HBRN.LCust Prop Inc