Custodian REIT buys Oxfordshire retail shed
Custodian REIT, the Leicester property investment company, has announced a further property purchase.
The company has bought a 34,955 sq ft retail warehouse in Banbury, one mile from junction 11 of the M40. Nearby occupiers include Wickes, Halfords, Homebase, Dunelm Mill, Topps Tiles and Staples.
The property is let to B&Q on a lease expiring on 24 March 2022 with a current passing rent of £478,842 per annum, reflecting a net initial yield of 6.94 per cent.
The agreed purchase price of £6.525m was funded from the company’s existing debt facilities.
Commenting on the acquisition, Richard Shepherd-Cross, managing director of Custodian Capital, said: “We are delighted to have secured this property let to B&Q which has been in occupation for 29 years. The unit is prominently located in an established bulky goods retail warehouse pitch, near the Banbury Cross Retail Park. The development of a proposed 42,000 sq ft Waitrose on land opposite will further strengthen the location.”
