Custodian REIT goes shopping in Chester with £2m deal

CUSTODIAN REIT, a Leicester property investment company, has bought a high street retail unit in Chester for £2m.

The unit let to TSB and Ciel (Concessions), trading as Chesca, and is located in the city centre on the pedestrianised Eastgate Street near Cath Kidston, Jack Wills, Kuoni Travel, H Samuel, Fat Face and Jaeger.

The tenants’ leases expire between September 2019 and March 2020 with a total passing rent of £128,000 a year, reflecting a net initial yield of 5.87%.

The agreed purchase price of £2,050,000 was funded from the company’s existing debt facilities.

Richard Shepherd-Cross, managing director of Custodian Capital (the company’s investment manager), said: “We are delighted to have secured this property located within the prime retail pitch, adjoining an existing Custodian REIT property. This acquisition enhances the Company’s existing holding in the city of Chester which stands out as a dominant retail centre in the region.”

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