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Custodian REIT acquires four industrial units on Hilton Business Park, Derby for £1.975mln

Published: 07:39 30 Nov 2020 GMT

Custodian REIT -
The agreed purchase price was funded from the company's existing cash resources, resulting in net gearing increasing to the group's 24.1% loan to value

Custodian REIT PLC (LON:CREI) has acquired four industrial units covering an aggregate 23,250 square foot on Hilton Business Park, Derby, one mile from the A50 which connects the M1 and M6.  

The agreed purchase price of £1.975mln was funded from the company's existing cash resources, resulting in net gearing increasing to the group's 24.1% loan to value.

READ: Custodian REIT hikes quarterly dividend as property investment activity rebounds

The UK property investment company said the units have an aggregate passing rent of £134,065 per annum, reflecting a net initial yield1of 6.39%. They are occupied by M P Bio Science, Shakespeare Pharma and Jangala Softplay with a weighted average unexpired term to first break or expiry of 2.0 years.

Commenting on the acquisition in a statement, Richard Shepherd-Cross, managing director of Custodian Capital Limited, the company's discretionary investment manager, said: "We are delighted to have secured this modern industrial asset at an attractive yield.  This acquisition pre-emptively deploys the disposal proceeds from some smaller retail asset sales expected to complete during December 2020, providing the Company with more potential for long-term rental growth."

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