Custodian REIT, the Leiceseter property investment company, has bought a retail development in the Midlands for £5.1m.
The company has acquired the 23,007 sq ft Wells Green Retail Park in Sheldon. The site is made up of three units occupied by Dreams, Pets at Home and Halfords, with nearby retailers including Morrisons, Tesco, Topps Tiles and Aldi.
The units’ leases expire on 28 September 2022, 26 September 2026 and 28 September 2027 respectively, with a total passing rent of £361,037 per annum reflecting a net initial yield1 of 6.64%.
Richard Shepherd-Cross, managing director of Custodian Capital, said: “We are delighted to have secured this prominently located property within Sheldon’s retail pitch and on one of the main arterial routes into Birmingham city centre. Halfords has recently signed a reversionary lease, demonstrating their dedication to the location.
“With strong occupier interest being experienced at the proposed Sheldon Retail Park development, the area is showing signs of strong future growth potential.”