Custodian REIT PLC (LSE:CREI) has bought two retail units on Winchester High Street for £3.65mln.
Occupied by the Nationwide Building Society and Hobbs, the properties generate an annual rental income of £249,200 equating to a net yield of 6.4%.
The acquisition was funded by debt and takes Custodian’s net gearing to 20.5% loan to value.
“We have recently seen prime high street retail rents improving for the first time in over four years and we feel this asset is a positive addition to our diversified portfolio at an attractive yield, well above Winchester’s historical average,” said Richard Shepherd-Cross, managing director of Custodian Capital, the REIT’s investment manager.