logo-loader
viewCustodian REIT

Custodian REIT acquires health and fitness centre in Lincoln

The UK property investment company has acquired a 77,242sq feet health and business centre, prominently located on the A46 within a leading mixed-use, out-of-town scheme with businesses in the immediate vicinity including Ibis Hotel, Fayre&Square and Frankie&Benny’s

acquisition puzzle board
Custodian REIT said the unit is let to Total Fitness Health Clubs Limited on a lease expiring on 22 June 2040

Custodian REIT PLC (LON:CREI) has announced the acquisition of health and fitness centre in Lincoln, with agreed purchase price of £4.3mln.

The UK property investment company has acquired a 77,242sq feet health and business centre, prominently located on the A46 within a leading mixed-use, out-of-town scheme with businesses in the immediate vicinity including Ibis Hotel, Fayre&Square and Frankie&Benny’s.

READ: Custodian REIT sells its Stourbridge property for £2.25mln

Custodian REIT said the unit is let to Total Fitness Health Clubs Limited on a lease expiring on 22 June 2040, subject to a tenant-only break on 22 June 2035. Current passing rent is £350,000 per annum, reflecting a net initial yield of 7.64%.

The company said the agreed purchase price of £4.3mln was funded from its existing debt resources, resulting in net gearing increasing to 22.4% loan to value.

Richard Shepherd-Cross, managing director of the company, said: “We are delighted to have acquired this high specification, purpose-built health and fitness centre in an established and prominent location with an unexpired lease term to first break of 17 years.”

He added: “The tenant has recently undertaken an extensive internal refurbishment, highlighting its confidence in the continued performance of the location.” 

Quick facts: Custodian REIT

Price: 113.4 GBX

LSE:CREI
Market: LSE
Market Cap: £467.27 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Custodian REIT named herein, including the promotion by the Company of Custodian REIT in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Proactive Research analyst discusses Custodian REIT's refinancing and...

Proactive Research analyst Ed Stacey says Custodian REIT (LON:CREI) is continuing to pursue its strategy of low-churn buy-and-hold rental income. In October 2019, Custodian announced the acquisition of a portfolio of eight distribution warehouses under a sale and leaseback deal with Menzies...

on 9/10/19

2 min read