Property investor acquires £27m portfolio

A PROPERTY investment company, Custodian REIT, has snapped up £26.75m worth of properties.

The deal includes 10 light industrial sites spread throughout the UK with a current rent of £2.21m, including a site in Sheffield.

The Sheffield property is a 23,000 sq ft unit with access to junctions 33 and 34 of the M1. The property is let to Arkote Limited with an unexpired lease of 7.6 years and passing rent of £120,750 per annum.

Nearby occupiers include Jack Wills, FPS Distribution, HSS Hire and Hertz.

Custodian bought the the properties by buying BLME (UK) GP LIBF (II) – the partners in BLME Light Industrial Building.

Richard Shepherd-Cross, managing director of Custodian Capital (the company’s investment manager), said: “The portfolio is a strong fit with our investment strategy and is complementary to our existing property portfolio, augmenting our regional, industrial bias and adding diversification by both tenant and location.

“The portfolio was compiled between 2011 and 2015 but is being sold due to the vendor restructuring its funds business. This provides Custodian REIT with opportunities to continue the asset management plan and enhance value.

“We agreed terms at the height of market uncertainty regarding the EU referendum and anticipate a valuation increase at 30 September 2016 as market sentiment recovers. This corporate transaction offered compelling economic benefits for the company and the vendor versus the company acquiring the properties directly, demonstrating our commitment to enhance shareholder value and secure economies of scale through growth in the fund.”

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