24th Jun 2015 07:12
LONDON (Alliance News) - Custodian REIT PLC on Wednesday said it has secured a forward funding agreement for a pre-let development in Cannock in Staffordshire.
Custodian said the deal is worth around GBP4.22 million and covers the acquisition of 3.5 acres of land at the Kingswood Lakeside development. The development includes a 63,000 square foot warehouse.
The net initial yield on the deal is 6.38%.
"We are delighted to have secured another development funding opportunity in a prime location, with a long-term lease to an excellent tenant. Pre-let industrial development volumes are increasing and we will continue to pursue opportunities where it is possible to secure brand new buildings in strong locations with tenants on long-leases, for no more than the price of standing investments," said Richard Shepherd-Cross, managing director of Custodian Capital Ltd, the company's external fund manager.
Shares in Custodian REIT were up 0.2% to 108.75 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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