£11.5m portfolio deal dominated by Black Country property

PROPERTY investor Custodian REIT has bought an £11.5m portfolio dominated by large industrial unit in Wolverhampton.

The 119,600 sq ft industrial unit in Willenhall is the head office of Assa Abloy, which has just over two years of its lease remaining.

Custodian has also taken ownership of a 25,471 sq ft office on a business park next to East Midlands Airport, which is let to National Grid, and a 16,470 sq ft office in Greater Manchester occupied by Wienerberger.

Richard Shepherd-Cross, managing director of Custodian Capital, said: “We are very pleased to have secured the portfolio which is well aligned to our investment strategy, comprising good quality, smaller lot size, regional office and industrial assets.  The properties are single let and occupied by strong tenants that are committed to the locations.

“The portfolio also offers the potential for proactive asset management, with a number of opportunities identified and explored with stakeholders during the due diligence process.”

The portfolio’s current passing rent of £0.99 million reflects a net initial yield of 8.04%, with an expected reversionary yield of 9.63%.  

The purchase is being funded from the company’s cash resources, following the drawdown of a new £45 million term loan earlier this month.