IN BRIEF: Custodian REIT purchases Winchester High Street property


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%

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