Staffordshire warehouse changes hands in £7m deal

PROPERTY company Custodian REIT has acquired a Staffordshire distribution unit in a £7m deal.
 
The Leicester-based company has acquired a 92,672 sq ft distribution unit on Centrum 100 Business Park, Burton upon Trent. The deal is being funded from the company’s existing debt facilities.

Nearby occupiers include Boots, DHL, Clipper Logistics and Palletforce.
 
Current passing rent is £509,696 per annum reflecting a net initial yield of 6.77%.
The unit is let to Kings Road Tyres and Repairs on a lease expiring in July 2031, with an option to break in 2021.
 
Richard Shepherd-Cross, managing director of Custodian Capital (the company’s discretionary investment manager), said: “We are delighted to have acquired this modern unit located in the ‘Golden Triangle’ of UK distribution.

“The Midlands is experiencing significant demand for high quality units with good communication links, demonstrated by the strong list of occupiers on this park. We expect these factors to lead to high demand and future rental growth.”