IN BRIEF: Custodian REIT purchases Winchester High Street property

Writer,

Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

Custodian REIT PLC - Leicester, England-based property investment company - Acquires two retail units on Winchester High Street in South England. The £3.7 million purchase covers 5,228 square foot, with the units let to Nationwide Building Society and Hobbs Ltd. It was funded through existing debt facilities, firm says. Describes Winchester as a ‘vibrant’ shopping location, with nearby occupiers being Marks & Spencer Group PLC, Boots UK Ltd, Halifax Bank and Superdrug Stores PLC.

‘The tenants’ leases expire in April 2028 and December 2031 respectively at an aggregate current passing rent of £249,200 per annum, reflecting a net initial yield of 6.4%,’ Custodian adds. The initial yield is calculated by passing rent divided by purchase price plus assumed purchasers’ costs, it explains.

The acquisition results in a net gearing increase of 21% loan to value, company says. It describes net gearing as ‘gross borrowings less cash (excluding tenant rental deposits and retentions) divided by last published property portfolio valuation’.

Current stock price: 98.37 pence, down 0.3% on Friday

12-month change: up 1.4%

Copyright 2022 Alliance News Limited. All Rights Reserved.