Leicester property investor snaps up 47,882 sq ft industrial unit

Richard Shepherd-Cross

Custodian REIT has acquired a 47,882 sq ft industrial facility for £3.5 million.

The unit, located two miles from junction 29 of the M1 near Chesterfield, is home to the manufacturing business Container Components, which holds a 20-year lease on the property.

The acquisition was funded from the property investor’s existing debt facilities.

Richard Shepherd-Cross, managing director of Custodian Capital, the company’s discretionary investment manager, said: “This well located, modern industrial asset has been acquired at an entry yield of 6.10% which is significantly above the market average for industrial assets.

“The property also benefits from five-yearly index linked rental increases which provide long-term inflation-adjusted income. The acquisition demonstrates our continued ability to source high quality assets on behalf of our shareholders which offer enhanced but secure income returns by focussing on smaller sized properties where there is reduced competition.”

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