Custodian REIT acquires a 9,016 sq ft industrial unit on Knowsley Business Park, Liverpool

Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce a property purchase.

The Company has acquired a 9,016 sq ft industrial unit on Knowsley Business Park, Liverpool, following its acquisition of five units on the same park earlier this month.  The unit is occupied by Engineering Solutions and Automations Limited with an unexpired term to first break or expiry of 4.1 years.

The unit has a passing rent of £45,000 per annum, reflecting a net initial yield1 of 5.17%.

The agreed purchase price of £0.825 million was funded from the Company’s existing debt facilities, resulting in net gearing2 increasing to 25.6% 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 another unit at this established industrial location with strong evidence of increasing rents.  We expect this unit’s net initial yield to increase above 6% once an outstanding rent review is settled.”

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

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