Custodian REIT PLC (LON:CREI) has expanded its portfolio with two new property purchases in the towns of Shrewsbury and Stafford.
The UK-focused property investment firm said the first acquisition in Shrewsbury was a 19,730 square feet Audi car dealership at the Battlefield Enterprise Park, located 4 miles from the town centre with the unit currently occupied by Lancaster plc, part of the Jardine Motors Group, with nearby occupiers including Volkswagen, BMW, Mercedes-Benz, Renault, and Ford.
READ: Custodian REIT purchases car dealership site yielding 6.75%
In Stafford, the company said it had acquired a 23,691 square feet Audi car dealership located around 2 miles from the town centre and currently occupied by Swansway Garages, a top-30 franchised motor dealership, with nearby occupiers including Land Rover, Nissan and Arnold Clark.
Custodian said the two properties had been let to VW Group UK Limited on leases expiring in December 2024, with current annual passing rent of £197,996 in Shrewsbury and £305,000 in Stafford.
The group added that the purchases, carrying a price tag of £7.37mln, reflected a net initial yield of 6.38% and was funded by existing debt resources increasing its net gearing to 22% of its loan to portfolio value.
The acquisitions come on the heels of a similar purchase last week when the company said it had purchased a 16,770 square feet car dealership at the Battlefield Enterprise Park for £1.67mln which carried a net initial yield of 6.75%.