Property investor buys retail park for £8.45m

Custodian REIT, the Leicester property investment company, has bought a 52,000 sq ft unit in Burton for £8.45m.

The Company has bought the Wellington Road Retail Park – site which includes three units let to Wickes, The Range and HSS Hire and has 208 parking spaces.

The units’ leases expire on 28 September 2028, 30 October 2031 and 29 September 2018 respectively, with a total passing rent of £580,681 per annum reflecting a net initial yield of 6.45%.

Richard Shepherd-Cross, managing director of Custodian Capital Limited (the Company’s discretionary investment manager), said: “We are delighted to have secured this prominently located retail park within Burton’s main out of town retail pitch. Some 35% of the property’s rent is subject to fixed uplifts and its weighted average unexpired lease term of over 11 years adds secure income to the portfolio. The HSS unit, which represents 7% of the asset’s aggregate rent, is unoccupied and provides an excellent opportunity to drive additional value by developing that part of the site.”