Property investment company Custodian REIT Plc has snapped up a Sainsbury’s supermarket in Cornwall in a deal worth more than £3m.
The 16,075 sq ft unit in Torpoint is let to Sainsbury’s Supermarkets on a 35 year lease, expiring on 14 December 2022 with a passing rent of £217,500 per annum, reflecting a net initial yield of 6.75 per cent.
The agreed purchase price of £3.05m was funded from the company’s existing facilities, with total funds of £14.7m now deployed from its revolving credit facility.
Custodian said the latest acquisition brings the total funds invested following its initial placing and admission to the Official List on 26 March 2014 to £84.3m.
Richard Shepherd-Cross, managing director of Custodian Capital, the company’s external fund manager, said: “We are delighted to have completed this off-market transaction to secure a supermarket in a very competitive sector of the property market.
“The unit is the only large format food store in Torpoint which has a catchment population of over 8,000 residents, separated from Plymouth by the river Tamar and linked by the Torpoint Ferry. The acquisition adds a high quality tenant and further diversifies the company’s retail portfolio.”
Hartnell Taylor Cook LLP advised the purchasers, Custodian REIT Plc and Green and Partners advised the vendors, Harwood Anthony Propco 13 Limited.
