Warrington building part of £55m property deal

PROPERTY investment vehicle Custodian REIT has bought a portfolio of unnamed properties for £55.1m, including an industrial building in Warrington.

The portfolio comprises four retail sites in Colchester, Guildford, Portsmouth and Winnersh, three industrial properties in Warrington, Redditch and Chepstow, and two offices in Edinburgh and West Malling, with an average lot size of £6.1m.

Occupiers include House of Fraser, Tesco, Reiss, Poundworld, Regus, Amco Services, Laura Ashley, H Samuel, Pets at Home and Wickes.
 
The portfolio’s current passing rent of £3.68m reflects a net initial yield of 6.32%, with an expected reversionary yield of 6.89%.  Following acquisition of the portfolio, the REIT’s average weighted unexpired lease term is 6.8 years.
 
The purchase price of £55.1m was funded using REIT’s existing cash and debt facilities, following an issue of new shares in December 2015, which raised £44.25m.

Richard Shepherd-Cross, managing director of Custodian Capital (the REIT’s discretionary investment manager) said: “The portfolio is an excellent fit with our investment strategy, comprising smaller lot size, good quality, secondary office, retail and industrial assets diversified by tenant and region.”