Sign up Australia
Proactive Investors - Run By Investors For Investors

Custodian REIT purchases car dealership site yielding 6.75%

"We are delighted to have secured this property within Shrewsbury's prime motor retail pitch, let on a long-term lease to a strong tenant," said Richard Shepherd-Cross, managing director of Custodian Capital Limited
TJ Vickers, car dealer
The acquisition resulted in net gearing increasing to 20.8% loan-to-value

UK property company Custodian REIT PLC (LON:CREI) has purchased a car dealership in the Shrewsbury area for £1.67mln.

The 16,770 square feet car dealership is on Battlefield Enterprise Park, Shrewsbury's premier car sales location, four miles from the town centre and five miles from the busy A6 that links Shrewsbury to the West Midlands. Nearby occupiers include Audi, Volkswagen, BMW, Mercedes-Benz, Renault and Ford, Custodian said.

READ: Custodian REIT has cranked rents up by 19% on average over the last year

The property is let to TJ Vickers and Sons Limited on a lease expiring on 31 September 2025 with a current passing rent of £120,000 per annum, reflecting a net initial yield of 6.75%.

“The company has exchanged contracts to acquire an adjacent Audi dealership, which will create economies of scale in managing both properties and assist with any future asset management," said Richard Shepherd-Cross, the managing director of Custodian’s discretionary investment manager.

View full CREI profile View Profile

Custodian REIT Timeline

Related Articles

1523450716_Belvoir_02.jpg
April 11 2018
Some 80% of Belvoir’s revenue comes from letting, which insulates it to a large degree from the ‘disruptors’
industrial property warehouse
June 12 2018
Custodian’s portfolio is weighted towards industrial sector and split between industrial, retail, office and other properties
GP's surgery
May 02 2018
The City broker has upped its stance on PHP to ‘buy’ from ‘hold’, given upside to its unchanged 120p target price and the benefits of the recent £115mln equity placing

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use