Property investment firm Custodian REIT PLC (LON:CREI) has purchased an industrial unit in the Hilton Business Park in Derby, which it has leased to aircraft maker Daher Aerospace Limited.
Custodian said it had purchased the 72,582 square foot unit for £5.58mln, which would be funded through its existing debt facilities.
READ: Custodian REIT expands portfolio with new car dealership acquisitions
Under the agreement with Daher, the lease will expire on 14 September 2031 and will have a current passing rent of £400,060 per annum reflecting a net initial yield of 6.72%.
The purchase follows the company’s acquisition of two Audi car dealerships in July, which carried a price tag of £7.37mln with the two leases carrying combined annual rent of around £502,996.
Commenting on the purchase, managing director of Custodian Capital Limited (the company’s discretionary investment manager), Richard Shepherd-Cross, said the affordable level of passing rent and the “increasing cost” of development limiting the supply of competing space, the firm expected “demand to lead to rental growth” at the September 2021 rent review.
In early trading Monday, shares were steady around 121p.
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