Cheadle offices part of £11.5m portfolio bought by investor
AN office facility in Cheadle, Greater Manchester is part of an £11.5m portfolio of three properties acquired by UK property investment company Custodian REIT.
Listed Custodian, has bought the building on Cheadle Royal Business Park nine miles from Manchester Airport, currently let to Wienerberger Ltd with an unexpired lease term of two years.
Leicester-based Custodian has bought a 25,471 sq ft office on Pegasus Business Park, Castle Donington, adjacent to East Midlands Airport which is let to National Grid and a 119,60 sq ft industrial unit in Wolverhampton let to Assa Abloy.
The Portfolio’s current passing rent of £0.99m reflects a net initial yield of 8.04%, with an expected reversionary yield of 9.63%.
The purchase price of £11.5m was funded from the Company’s cash resources, following the drawdown of a new £45mterm loan on June 6. Net gearing1 following the acquisition has increased to 14.9%.
Richard Shepherd-Cross, managing director of Custodian Capital (the company’s discretionary investment manager), said: “We are very pleased to have secured the portfolio which is well aligned to our investment strategy, comprising good quality, smaller lot size, regional office and industrial assets.
“The properties are single let and occupied by strong tenants that are committed to the locations. The Portfolio also offers the potential for proactive asset management, with a number of opportunities identified and explored with stakeholders during the due diligence process.”
