UK property investment firm Custodian REIT (LON:CREI) has added to its portfolio with the acquisition of an office building in Sheffield for £3.56mln.
The building is located in the Riverside Exchange in Sheffield’s city centre and is let to the Secretary of State for Communities and Local Government operating branches of the Home Office and the Health and Safety Executive on two leases, which run until 30 June 2022 with aggregate passing rent of £371,299 per year reflecting a net initial yield of 9.79%.
The company used existing debt facilities to fund the deal.
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"We are delighted to have secured this recently refurbished office building in Sheffield city centre where the office market has grown year-on-year since 2014,” said Richard Shepherd-Cross, managing director of Custodian Capital Limited.
“The property offers open-plan, well-configured floor plates from 5,455 sq ft which are a good fit with local occupational demand and its position opposite a Home Office occupied 200,000 sq ft office building supports the potential long-term commitment of the tenant."