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Custodian REIT - Leicester, England-based real estate investment trust - Buys two retail warehouse assets in England for a total of £8.9 million.
The warehouses in Leicestershire's Measham and Worcestershire's Droitwich occupy a total space of 40,077 square foot. The purchases were funded from the firm's existing debt resources.
Custodian expects a net initial yield of 9.43%, as the units are let to DFS Furniture PLC ‘with a weighted average unexpired term to first break or expiry of 8.0 years and an aggregate passing rent of £894,103 per annum,’ Custodian explains. It adds the net initial yield is calculated by ‘passing rent divided by valuation plus assumed purchasers costs.’
Custodian REIT Managing Director Richard Shepherd-Cross comments: ‘We anticipate future market rental growth which should mitigate some of the acknowledged over-rent, support valuations and protect long term income streams.’
Current stock price: 108.13 pence, up 1.8% on Wednesday
12-month change: up 8.1%
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