18th Apr 2016 08:16
LONDON (Alliance News) - London-listed UK property investment company Custodian REIT PLC said Monday it has purchased a high street retail unit in Chester for GBP2.1 million.
Custodian said the acquisition was funded from its existing debt facilities, resulting in net borrowings increasing to 19% loan to value.
Custodian added the retail unit, located on Eastgate Street, is currently let to bank TSB Ltd and clothing retailer Ciel (Concessions) Ltd, with the leases expiring between September 2019 and March 2020. The annual rent from the site is GBP128,000, reflecting a net initial yield of 5.9%.
"This acquisition enhances the company's existing holding in the city of Chester which stands out as a dominant retail centre in the region," said Richard Shepherd-Cross, managing director of Custodian REIT's investment manager, Custodian Capital Ltd.
Shares in Custodian were down 0.3% at 109.12 pence on Monday.
By Hannah Boland; [email protected]; @Hannaheboland
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