Custodian REIT acquires 35,000 sq ft retail warehouse on Transit Way Retail Park, Plymouth

Custodian REIT is pleased to announce a further property purchase.

The Company has acquired a 35,000 sq ft retail warehouse on Transit Way Retail Park, Plymouth, near the A38 Devon Expressway.  The site comprises two units occupied by Magnet and B&M, with nearby retailers including Argos, Tesco, Lidl and Matalan.

The units’ leases expire on 26 January 2027 and 20 August 2027 respectively with a total passing rent of £400,000 per annum, reflecting a net initial yield1 of 6.79%.

The agreed purchase price of £5.525 million was funded from the Company’s existing cash resources, resulting in net gearing2 increasing to 21.1% 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 an established Plymouth out of town retail park.  Magnet and B&M are strong nationally established tenants which add to Custodian REIT’s retail warehouse portfolio.  Magnet has been in occupation since the property was constructed and a recent comprehensive refurbishment, which split the property into two smaller units, has made it very attractive in the modern retail environment.”

1 Passing rent divided by purchase price plus assumed purchasers’ costs.

2 Gross borrowings less unrestricted cash divided by last published property portfolio valuation.