Custodian REIT PLC (LSE:CREI), the UK property investment company predominantly focussed on small lots of land, announced that it paid £4.5mln to acquire a 46,000 sq ft retail unit in Cromer, Norfolk that is occupied by Homebase.
The purchase consideration came from the company’s debt resources, which sees net gearing increase to 21.1% loan to value.
“Homebase has traded well from this modern unit in Cromer's core retail warehouse pitch and this property firmly meets our investment criteria," said Richard Shepherd-Cross, managing director of Custodian Capital Ltd – the company’s investment manager.
The property, which neighbours many other retail properties, is let on a lease expiring in July 2028 for £300,000 per annum and has a net initial yield of 6.29%.
"Well-located retail warehouses are complementary to online retailing and have remained in demand during the restructuring of the retail market and the COVID-19 pandemic,” added Shepherd-Cross.