Custodian REIT PLC (LSE:CREI) said it is acquiring an industrial facility in Grangemouth, Scotland, that is leased to a sawmill for the next 18 years for £7.49mln.
The unit is rented for £388,261. With the RPI-linked rent increase planned for next September, the net yield from the property will be 5.5%.
The acquisition means the Custodian’s net gearing moves to 20.9% loan to value.
Richard Shepherd-Cross, of Custodian Capital, the property company's investment manager, said: "We are delighted to have secured this property which benefits from excellent links to both Glasgow and Edinburgh but importantly for the tenant, which imports timber, is in close proximity to Scotland's largest container port.”