logo-loader
FinanceReal Estate
viewCustodian REIT

Custodian REIT acquires Evesham Shopping Park

Custodian REIT targets sub-£10 million lot size, regional properties

Next
The shopping centre comprises a terrace of five units occupied by Next, M&S, Boots, Argos and Poundstretcher

Custodian REIT PLC (LON:CREI), the UK property investment company, has acquired the 43,000 square feet Evesham Shopping Park for £14.2mln.

The shopping centre is one mile from Evesham town centre and two miles from the A46, linking the M5 and M40. It comprises a terrace of five units occupied by Next, M&S, Boots, Argos and Poundstretcher, with nearby retailers including Tesco, and B&M.

READ: Custodian REIT buys high street unit in Stratford

The units have a weighted average unexpired lease term to expiry of 6.8 years and have been purchased at a price reflecting a net initial yield of 6.04%.

The acquisition was funded from Custodian’s existing debt resources, resulting in net gearing rising to a loan-to-value percentage of 22.8.

"Both Next and Boots have recently extended their leases at the passing rent indicating their commitment to the location. B&M Bargains has recently constructed a 25,000 sq ft unit adjacent to the Park, demonstrating that together with the Tesco Extra opposite this is the prime out of town location in Evesham. We are pleased to have secured this opportunity to acquire a very well-let park at a price which reflects a discount to recent market pricing,” said Richard Shepherd-Cross, the managing director of Custodian’s discretionary investment manager.

"We believe well located, out-of-town, retail warehouse properties which, either do not compete with online retailing or are complementary, through offering easy click-and-collect services will remain in demand despite the current restructuring of the retail market. This acquisition presented an opportunity to buy a prime asset, let to blue-chip tenants, at a sufficiently high yield to support our fully covered dividend," he added.

Shares in Custodian REIT were up 0.5% at 116p in early trades.

Quick facts: Custodian REIT

Price: 116.532 GBX

LSE:CREI
Market: LSE
Market Cap: £476.85 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Custodian REIT named herein, including the promotion by the Company of Custodian REIT in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Custodian REIT reports robust quarterly update - Capital Network analyst

Capital Network's Ed Stacey gives his view on Custodian REIT's (LON:CREI) latest quarterly net asset value (NAV) update. The release shows a NAV of £426.6mln, unchanged versus December 2018, and NAV total return per share of 5.9%. Occupancy remains high at 95.9%. Custodian now...

on 1/5/19

2 min read