Custodian acquires 44,844-sq ft Jubilee Close retail park
Custodian has paid £10.8m for the scheme which comprises three units occupied by B&Q, Halfords and Sports Direct. The units have a weighted average unexpired lease term to first break or expiry of 7.8 years. Current aggregate passing rent is £803,000, reflecting a net initial yield of 6.97%.
Managing director Richard Shepherd-Cross said: “Despite the investment market’s aversion to the retail sector, we believe that these occupiers will continue to prosper despite challenges from on-line sales and with nearly eight years contractual income, strong trading performances and a 7% initial yield, this property meets our investment criteria.
“We believe well located retail warehouse properties which either do not compete with on-line retailing or are complementary, through offering easy click & collect services, will remain in demand despite the current restructuring of the retail market.”