Custodian REIT is pleased to announce a further property purchase.
The Company has acquired the 23,007 sq ft Wells Green Retail Park in Sheldon, five miles from Birmingham city centre on the busy A45 Coventry Road. The site comprises three units occupied by Dreams, Pets at Home and Halfords, with nearby retailers including Morrisons, Tesco, Topps Tiles and Aldi.
The units’ leases expire on 28 September 2022, 26 September 2026 and 28 September 2027 respectively, with a total passing rent of £361,037 per annum reflecting a net initial yield[1] of 6.64%.
The agreed purchase price of £5.1 million was funded from the Company’s existing cash resources, resulting in net gearing[2] increasing to 19.6% loan to value.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s discretionary investment manager), said:
“We are delighted to have secured this prominently located property within Sheldon’s retail pitch and on one of the main arterial routes into Birmingham city centre. Halfords has recently signed a reversionary lease, demonstrating their dedication to the location. With strong occupier interest being experienced at the proposed Sheldon Retail Park development, the area is showing signs of strong future growth potential.”
1 Passing rent divided by valuation plus assumed purchasers’ costs.
2 Gross borrowings less unrestricted cash divided by last published property portfolio valuation.
