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Custodian REIT - Leicester, England-based real estate investment trust - Buys two retail warehouse assets in England for a total of GBP8.9 million.
The warehouses in Leicestershire's Measham and Worcestershire's Droitwich occupy a total space of 40,077 square foot. The purchases were funded from the firm's existing debt resources.
Custodian expects a net initial yield of 9.43%, as the units are let to DFS Furniture PLC "with a weighted average unexpired term to first break or expiry of 8.0 years and an aggregate passing rent of GBP894,103 per annum," Custodian explains. It adds the net initial yield is calculated by "passing rent divided by valuation plus assumed purchaser’s costs."
Custodian REIT Managing Director Richard Shepherd-Cross comments: "We anticipate future market rental growth which should mitigate some of the acknowledged over-rent, support valuations and protect long term income streams."
Current stock price: 108.13 pence, up 1.8% on Wednesday
12-month change: up 8.1%
By Tom Budszus; tombudszus@alliancenews.com
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