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Custodian REIT acquires health and fitness centre in Lincoln

The UK property investment company has acquired a 77,242sq feet health and business centre, prominently located on the A46 within a leading mixed-use, out-of-town scheme with businesses in the immediate vicinity including Ibis Hotel, Fayre&Square and Frankie&Benny’s

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Custodian REIT said the unit is let to Total Fitness Health Clubs Limited on a lease expiring on 22 June 2040

Custodian REIT PLC (LON:CREI) has announced the acquisition of health and fitness centre in Lincoln, with agreed purchase price of £4.3mln.

The UK property investment company has acquired a 77,242sq feet health and business centre, prominently located on the A46 within a leading mixed-use, out-of-town scheme with businesses in the immediate vicinity including Ibis Hotel, Fayre&Square and Frankie&Benny’s.

READ: Custodian REIT sells its Stourbridge property for £2.25mln

Custodian REIT said the unit is let to Total Fitness Health Clubs Limited on a lease expiring on 22 June 2040, subject to a tenant-only break on 22 June 2035. Current passing rent is £350,000 per annum, reflecting a net initial yield of 7.64%.

The company said the agreed purchase price of £4.3mln was funded from its existing debt resources, resulting in net gearing increasing to 22.4% loan to value.

Richard Shepherd-Cross, managing director of the company, said: “We are delighted to have acquired this high specification, purpose-built health and fitness centre in an established and prominent location with an unexpired lease term to first break of 17 years.”

He added: “The tenant has recently undertaken an extensive internal refurbishment, highlighting its confidence in the continued performance of the location.” 

Quick facts: Custodian REIT

Price: 84.4 GBX

LSE:CREI
Market: LSE
Market Cap: £354.53 m
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