Custodian REIT PLC (LSE:CREI) purchased an industrial unit on the outskirts of York for £2.962mln.
The 28,601 sq ft unit is on Clifton Moor Industrial Estate, near to York's northern bypass which connects to both the A1(M) and M62.
It is currently occupied by Menzies Distribution and has a passing rent of £186,000 per year, reflecting a net initial yield of 5.9%.
The purchase was funded from the company's existing debt facilities, resulting in net gearing increasing to 20.8% loan to value.
Richard Shepherd-Cross, managing director of investment manager Custodian Capital, said: “We are delighted to have secured this logistics asset located on an industrial estate in high demand from occupational tenants due to its excellent location. This demand has led to strong evidence of increasing industrial rents, offering an accretive asset management opportunity.”