Proactive Investors - Run By Investors For Investors

Custodian REIT purchases car dealership site yielding 6.75%

"We are delighted to have secured this property within Shrewsbury's prime motor retail pitch, let on a long-term lease to a strong tenant," said Richard Shepherd-Cross, managing director of Custodian Capital Limited
TJ Vickers, car dealer
The acquisition resulted in net gearing increasing to 20.8% loan-to-value

UK property company Custodian REIT PLC (LON:CREI) has purchased a car dealership in the Shrewsbury area for £1.67mln.

The 16,770 square feet car dealership is on Battlefield Enterprise Park, Shrewsbury's premier car sales location, four miles from the town centre and five miles from the busy A6 that links Shrewsbury to the West Midlands. Nearby occupiers include Audi, Volkswagen, BMW, Mercedes-Benz, Renault and Ford, Custodian said.

READ: Custodian REIT has cranked rents up by 19% on average over the last year

The property is let to TJ Vickers and Sons Limited on a lease expiring on 31 September 2025 with a current passing rent of £120,000 per annum, reflecting a net initial yield of 6.75%.

“The company has exchanged contracts to acquire an adjacent Audi dealership, which will create economies of scale in managing both properties and assist with any future asset management," said Richard Shepherd-Cross, the managing director of Custodian’s discretionary investment manager.

View full CREI profile View Profile

Custodian REIT Timeline

CN Research
January 29 2019

Related Articles

Doctors
March 18 2019
Analysts at Peel Hunt said: “The enlarged vehicle now delivers a very durable income proposition underpinned by a Government covenant and sector-leading income efficiency”
africa
March 20 2019
The company expects to capitalise on the “significant potential growth” from its unique high-quality portfolio of properties
Belvoir
February 08 2019
Belvoir has expanded its operations in mortgages to provide an alternative source of income

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use