22nd Feb 2016 08:33
LONDON (Alliance News) - Custodian REIT PLC on Monday said it has acquired a retail warehouse in Banbury for GBP6.5 million.
The 34,955 square feet property is let to DIY retailer B&Q PLC on a lease expiring on March 24, 2022, with a current passing rent of GBP478,842 per year, reflecting a net initial yield of 6.9%.
The acquisition was funded from Custodian's existing debt facilities, resulting in net borrowings increasing to 20% loan to value.
"We are delighted to have secured this property let to B&Q which has been in occupation for 29 years. The unit is prominently located in an established bulky goods retail warehouse pitch, near the Banbury Cross Retail Park. The development of a proposed 42,000 square feet Waitrose on land opposite will further strengthen the location," Managing Director of Custodian Capital Ltd Richard Shepherd-Cross said in a statement.
Shares in Custodian were trading up 0.9% at 109.00 pence on Monday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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