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Custodian REIT PLC - Leicester, England-based real estate investment trust - Buys a 91,955 square feet distribution facility located between Glasgow and Edinburgh for GBP11.1 million. It has a net initial yield of 5.3%. The property is on the Eurocentral industrial estate at Junction 7 of the M8 motorway. It is fully let to distribution company Gist Ltd, with five years remaining on the lease, producing a yearly rent of GBP623,160. Funds the acquisition through its existing debt facilities.
"We see scope to significantly increase the rental intake of this conservatively let asset based on recent local comparables combined with strong occupational demand, meaning we expect the reversionary yield on purchase price to move towards roughly 7%. This purchase highlights the yield advantage offered by the company’s smaller regional property strategy of acquiring strong and secure assets with the potential for future income and valuation growth," Custodian Capital Managing Director Richard Shepherd-Cross says.
Custodian Capital is the fund manager of Custodian REIT. It is owned by Mattioli Woods PLC.
Current stock price: 102.44 pence
12-month change: up 7.6%
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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