Custodian REIT's shares edge higher after property deals

Shares in Custodian REIT edged higher after it announced several property purchases.

It had acquired three units within the 33,270 sq ft Coypool retail park in Plymouth, near the town centre and adjacent to the A38 Devon Expressway.

The units' leases expire on 6 June 2025, 13 October 2026 and 28 September 2031 respectively with a total passing rent of £538,226 a year, reflecting a net initial yield of 6.74%.

The agreed purchase price of £7.487 million was funded from the company's existing debt resources.

It had also acquired a 31,062 sq ft retail warehouse in Galashiels, located on the A7 close to the town centre and railway station. Nearby occupiers include Tesco, Asda, Halfords and Aldi.

The property is let to B&Q plc on a lease expiring on 27 December 2024 with a current passing rent of £275,000 a year, reflecting a net initial yield of 8.24%.

The agreed purchase price of £3.145 million was funded from the company's existing debt facilities.

At 13:21 BST, shares in Custodian REIT were up 0.22% to 111.5p each.