Custodian REIT PLC (LON:CREI) said it has purchased an office building one mile west of Oxford city centre for £7.86mln.
The UK property investment company has acquired Willow Court, a 22,545 square feet office building on Minns Business Park, adjacent to the A34, which connects the M4 and M40.
The property comprises four floors let to RBS, Dehns, Charles Stanley, Oxentia and the Smith Institute with a weighted average unexpired lease term to first break or expiry of four years and an aggregate rent of £537,496 per annum, reflecting a net initial yield of 6.41%.
The purchase will be funded from the company’s existing debt facilities, resulting in the net gearing increasing to 24.4% loan-to-value.
"We are delighted to have secured this office building in a proven location with a strong tenant line-up. Due to local development restrictions office supply in the vicinity has a history of high demand. The modern and recently refurbished property also has potential asset management opportunities to enhance value and extend its income profile,” said Richard Shepherd-Cross, the managing director of Custodian Capital, the real estate investment trust’s discretionary investment manager, in a statement.