13th May 2014 09:12
LONDON (Alliance News) - Custodian REIT PLC Tuesday said it has acquired a modern industrial/distribution unit in Castleford, West Yorkshire for GBP1.6 million - its first property purchase since its initial public offering in March.
In March, Custodian REIT became the latest real estate investment trust to list in London, raising GBP55 million. At the time the company said its initial public offering was oversubscribed. A total of just under 132 million shares were allotted at a price of 100 pence a share, giving it an initial market capitalisation of nearly GBP132 million.
Its shares were trading up 0.1% at 106.00 pence Tuesday morning.
Custodian REIT did not name the seller but said the property is let to Bunzl UK Ltd, the UK arm of distribution and outsourcing company Bunzl PLC, with an unexpired lease term of nine years and five months.
The property is let at a passing rent of GBP125,000 a year, reflecting a net initial yield of 7.5%. Passing rent is the gross rent, less any ground rent payable under head leases.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Cust Prop IncBunzl