Custodian REIT buys health and fitness centre

Custodian REIT has acquired a 24,230 sq ft health and fitness centre in Salisbury, located less than two miles from the city centre and prominently fronting on to the A30, the main arterial road into the city from the North.

Adjacent businesses include Premier Inn, Handelsbanken, Busy Bees nursery and a BMW/Mini dealership.

The unit is let to Parkwood Health & Fitness Limited on a lease expiring on 2 March 2031, with current passing rent of £200,000 per annum reflecting a net initial yield1 of 6.75%.

The agreed purchase price of £2.785 million was funded from the company’s existing cash resources, resulting in net gearing increasing to 20.5% loan to value.

At 9:09am: (LON:CREI) Custodian Reit Plc share price was +0.13p at 114.38p

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