Custodian REIT PLC (LON:CREI), the UK property investment company, has bought a property for £2.1mln in the East End of London.
The real estate investment trust (REIT) has a high street unit on The Grove in Stratford, comprising a ground floor retail unit with an upper floor office suite. Nearby occupiers include Morrisons, Boots, Argos, Lidl and Nando's.
The property has a current passing rent of £150,935 a year, reflecting a net initial yield of 6.78%.
READ: Custodian REIT delivers NAV total return of 2.3% in the third quarter
"Following the London 2012 Olympics, Stratford is now well established as East London's most significant retail and leisure destination, with the completion of the Crossrail project due in December 2019 set to further enhance the area,” declared Richard Shepherd-Cross, the managing director Custodian REIT’s discretionary investment manager.
"Both tenants are committed to the location having recently renewed their leases at higher rents and the resulting weighted average unexpired lease term to the first break of over eight years adds secure income to the portfolio. The title provides the ability to use the adjacent Morrison's car park without restriction, providing almost unlimited car parking, which is a major selling point should the premises ever become vacant," he added.
Shares in Custodian were down 0.2p at 118.8p in early deals.