Property investment vehicle buys development land at Tournament Fields

CUSTODIAN REIT, a UK property investment company, has completed an agreement for a pre-let development, together with the purchase of development land at the Tournament Fields scheme near Warwick.
 
The real estate investment trust has acquired 1.88 acres of land at Tournament Fields, which is two miles south west of Warwick at junction 15 of the M40. 

Its development land purchase will cost £850,000 while the pre-let build will cost £2.635m.

The pre-let development comprises a 27,400 sq ft single storey industrial/warehouse unit, with construction being phased over an expected five month build period.  
 
The unit, to be developed by Clowes Developments, has been pre-let to Semcon Product Information UK on a ten and a half year lease with no break option. 

On completion of the development the total passing rent will be £180,000, reflecting a net initial yield of 6.64%.
 
Richard Shepherd-Cross, managing director of Custodian Capital (the company’s external fund manager), said:  “The current shortfall in supply of quality industrial units has led to increased demand for development funding of this kind throughout the UK. 

“This opportunity was of particular interest due to a well located unit and strong tenant on a long term lease. We anticipate further investment in pre-let development projects while the requirement for good quality units in areas of high demand continues.”

Occupiers on Tournament Fields include Eagle Burgmann, Geberit, Pure Offices and West Midlands Ambulance Service.  

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