29th Jan 2015 09:34
LONDON (Alliance News) - Custodian REIT on Thursday said it has struck a deal to buy an office building in Solihull for GBP2 million.
Custodian said the three-storey building in the centre of Solihull is let to Lyons Davidson Ltd on a lease expiring in October 2024 at an annual rent of GBP189,000 per year, reflecting a net initial yield of 9.05%.
"We are pleased to have secured this well-let office building in Solihull's town centre. The investment will provide a generous running yield and the comfort of a strong residual value, supported by the strength of the Solihull property market," said Richard Shepherd-Cross, Managing Director of Custodian Capital Ltd, the external fund manager of the trust.
Shares in Custodian REIT were down 0.5% to 106.00 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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