Ediston Property, a newly launched UK REIT, has exchanged contracts to acquire a B&Q Extra retail warehouse in the Scottish town of Coatbridge from Harcourt Life Assurance Company for £16.8 mln (€23 mln), net of acquisition costs.
Ediston Property, a newly launched UK REIT, has exchanged contracts to acquire a B&Q Extra retail warehouse in the Scottish town of Coatbridge from Harcourt Life Assurance Company for £16.8 mln (€23 mln), net of acquisition costs.
The investment volume reflects a net initial yield of 7.46%.
The property comprises103,000 sq ft (9,570 m2), plus a garden centre and builders’ yard, with parking for 600 cars, on a site of 4.27 acres. It is let to B&Q until December 2022 with a rent review in 2017.
'This acquisition provides the company with good secure income in the retail warehouse sector,' said Calum Bruce, director of investment at Ediston Properties' investment adviser. 'We believe it is a property that offers a number of opportunities for us to implement the Ediston style of asset management to enhance its income profile and returns over the coming years.'
Ediston Property launched in October 2014 with the acquisition of an initial £76.7 mln diversified portfolio of UK commercial properties. It typically targets assets which have a net initial yield over 6.5%.
