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Custodian REIT Acquires Scottish Distribution Unit
Friday 16 June 2017

16 June 2017 - UK property investment company Custodian REIT (LSE: CREI) has acquired a 69,922 sq ft distribution unit on Eurocentral, a Scotland-based mixed-use business park on the M8 arterial route between Glasgow and Edinburgh, the company said.

Nearby occupiers include DHL, Warburtons, Argos, Wincanton, Norbert Dentressangle and Morrisons.
The unit is let to Next plc on a lease expiring on 6 March 2019. Current passing rent is GBP 349,850 per annum reflecting a net initial yield1 of 6.91%, with an expected reversionary yield of circa 7.9%.
The agreed purchase price of GBP 4.75m (USD 6.06m) was funded from the company's existing cash resources, resulting in net gearing2 increasing to 18.6% loan to value.
Custodian REIT plc is a UK real estate investment trust. Its portfolio comprises properties predominantly let to institutional grade tenants on long leases throughout the UK and is characterised by small lot sizes, with individual property values of less than GBP10 m at acquisition.
Date Published: 16/06/2017
Target: Distribution unit on Eurocentral, a Scotland-based mixed-use business park
Country: UK
Deal Size: 6.06m (USD)
Sector: Construction/Real Estate
Type: LBO
Financing: Cash
Status: Closed
Buyer: Custodian REIT