8th Jul 2016 06:43
LONDON (Alliance News) - Property investor Custodian REIT PLC on Friday said it has secured a new letting in Colchester to lender Metro Bank PLC and said the fundamentals of its end markets should underpin performance post-the Brexit vote.
Custodian REIT said it has let a retail unit on High Street, Colchester to Metro Bank at a passing rent of GBP200,000 a year on a 25-year lease.
The letting is expected to result in a valuation uplift for Custodian REIT of around GBP1.5 million, it said.
Richard Shepherd-Cross, managing director of Custodian Capital Ltd, manager of Custodian REIT, said the vote to leave the European Union has cast uncertainty on the near-term outlook for the commercial property market, particularly in London.
He said Custodian REIT's performance is more closely-linked to the underlying occupational property market. A lack of supply, following years of limited development activity, should continue to underpin rental growth within the firm's portfolio.
By Sam Unsted; [email protected]; @SamUAtAlliance
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