leadf
logo-loader
viewCustodian REIT

Custodian REIT purchases pre-let development

The investment trust has acquired 0.6 acres of land in Nottingham near to the recently developed NG2 Business Park on the A453 Queens Drive, the main route into Nottingham city centre from the south

Custodian REIT - Custodian REIT purchases pre-let development

Custodian REIT PLC (LON:CREI) said it had completed a forward funding agreement and purchased the land for a pre-let development.

The investment trust said it has acquired 0.6 acres of land in Nottingham adjacent to the Castle Marina Shopping Park and near to the recently developed NG2 Business Park on the A453 Queens Drive, the main route into Nottingham city centre from the south.

WATCH: Custodian REIT highlights focus on income and continued need for commercial property

Custodian said the development will comprise a 2,163 square foot drive-through coffee shop with 34 parking spaces, with construction to be phased over an expected six month build period. The development has been pre-let to KBeverage Limited (trading as Starbucks Coffee) on a 20 year lease, without break, with five yearly upward only market rent reviews.

On completion of the development for a total consideration of £1.725mln, the total passing rent will be £115,000 per annum reflecting a net initial yield of 6.67%.

The £900,000 purchase price of the land will be funded from the company’s existing cash resources.

"Demand for drive-through stores continues to show growth, especially in the hot beverage market, and is proving resilient in the face of the [coronavirus] pandemic.  The location of this property on an arterial access route for Nottingham city centre allows easy accessibility for traffic both entering and leaving the city, enhancing the site's offering", said Richard Shepherd-Cross, managing director of Custodian Capital, the firm’s discretionary investment manager.

Shares in Custodian REIT were 0.7% higher at 87.1p in late-morning trading on Wednesday.

Quick facts: Custodian REIT

Price: 87.8 GBX

LSE:CREI
Market: LSE
Market Cap: £368.81 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Custodian REIT named herein, including the promotion by the Company of Custodian REIT in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Custodian REIT highlights focus on income and continued need for commercial...

Custodian REIT's (LON:CREI) Richard Shepherd-Cross speaks to Proactive London's Andrew Scott following the release of its results to March 2020. He says the outlook for real estate investment is likely to become clearer and potentially more positive as lockdown eases. He adds that around 70% of...

on 24/6/20

2 min read