Custodian REIT acquires a 28,601 sq ft industrial unit on Clifton Moor Industrial Estate, York

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

The Company has acquired a 28,601 sq ft industrial unit on Clifton Moor Industrial Estate, York, adjacent to York’s northern bypass which connects to both the A1(M) and M62.  The unit is occupied by Menzies Distribution Limited with a weighted average unexpired term to first break or expiry of 2.8 years.

The unit has a passing rent of £186,000 per annum, reflecting a net initial yield1 of 5.90%.

The agreed purchase price of £2.962 million was funded from the Company’s existing debt facilities, resulting in net gearing2 increasing to 20.8% 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 logistics asset located on an industrial estate in high demand from occupational tenants due to its excellent location.  This demand has led to strong evidence of increasing industrial rents, offering an accretive asset management opportunity.”

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

2 Gross borrowings less cash (excluding tenant rental deposits and retentions) divided by last published property portfolio valuation.