City briefs: Custodian REIT and Impact Healthcare REIT
UK property investment company, Custodian REIT, has bought a 28,601 sq ft industrial unit on Clifton Moor Industrial Estate, York, adjacent to the city’s northern bypass.
The unit is occupied by Menzies Distribution Limited with a weighted average unexpired term to first break or expiry of 2.8 years.
The unit has a passing rent of £186,000 per annum, reflecting a net initial yield1 of 5.90%.
The agreed purchase price of £2.962m was funded from the company’s existing debt facilities.
Richard Shepherd-Cross, managing director of Custodian Capital Limited – the company’s discretionary investment manager – said: “We are delighted to have secured this logistics asset located on an industrial estate in high demand from occupational tenants due to its excellent location.
“This demand has led to strong evidence of increasing industrial rents, offering an accretive asset management opportunity.”
Impact Healthcare REIT has completed on the sale of Heeley Bank a 67-bed care home in Sheffield, acquired as part of a portfolio of four homes leased to MMCG in March 2020.
The home was not a long-term strategic asset for Impact or MMCG, and as part of the Group’s active portfolio management strategy, was jointly marketed post acquisition.
The sale price of £1.68m was 29% above the purchase cost of the home and 12% above the carrying value at 30 June 2021.