LONDON (Alliance News) - Ediston Property Investment Company PLC Monday said it has exchanged contracts to buy a B&Q Extra retail warehouse in Coatbridge, Scotland, from Harcourt Life Assurance Company Ltd for GBP16.8 million net of acquisition costs, which reflects a net initial yield of 7.46%.
The property extends to 103,000 square feet, plus a garden centre and builders' yard, with parking for 600 cars, on a site of 4.27 acres. It is let to B&Q until December 2022 with a rent review in 2017, and "offers a solid income stream for the company, which can be further improved through asset management and development", Ediston said.
"We believe it is a property that offers a number of opportunities for us to implement the Ediston style of asset management to enhance its income profile and returns over the coming years," Calum Bruce, director of investment at Ediston Properties Ltd, the company's investment adviser, said.
Ediston shares were up 0.9% at 111.71 pence Monday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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