West Midlands sites part of £27m portfolio sale
Custodian REIT has paid £26.75m for a portfolio of 10 light industrial sites spread throughout the UK.
The portfolio, which has a current annual rent of £2.21m, includes sites in West Bromwich and Atherstone.
Custodian bought the the properties by buying BLME (UK) GP LIBF (II) – the partners in BLME Light Industrial Building.
Richard Shepherd-Cross, managing director of Custodian Capital, which is the company’s investment manager, said: “The portfolio is a strong fit with our investment strategy and is complementary to our existing property portfolio, augmenting our regional, industrial bias and adding diversification by both tenant and location.
“The portfolio was compiled between 2011 and 2015 but is being sold due to the vendor restructuring its funds business. This provides Custodian REIT with opportunities to continue the asset management plan and enhance value.
“We agreed terms at the height of market uncertainty regarding the EU referendum and anticipate a valuation increase at 30 September 2016 as market sentiment recovers. This corporate transaction offered compelling economic benefits for the company and the vendor versus the company acquiring the properties directly, demonstrating our commitment to enhance shareholder value and secure economies of scale through growth in the fund.”
The West Midlands sites are a 60,000 sq ft unit in West Bromwich, which is let to Oyez Straker Group for the next 11.5 years, and a 23,000 sq ft industrial estate in Atherstone, where North Warwickshire Borough Council has a lease for another 3.8 years.
