The company has acquired the 20,000 sq ft Manchester office building from developer McAleer & Rush, reflecting a net initial yield of 6.10%.
Custodian REIT’s £6.25m purchase was funded through the company’s existing debt facilities.
The six-storey office block is let to Leyton UK, Meridian Healthcomms, Venditan, and Fourthline.
The asset has a WAULT of 1.2 years and an aggregate rent of £406,704 a year.
The short WAULT represents “potential asset management opportunities to enhance value and increase passing rent”, according to Richard Shepherd-Cross, managing director of Custodian Capital.
Custodian REIT’s portfolio comprises assets typically valued below £10m.
“This high-quality office building [is] in a proven central Manchester location, which continues the pre-emptive deployment of proceeds from the sale of a portfolio of industrial properties due to complete later this month,” Shepherd-Cross added.
Steerfoth represented McAleer & Rush on the deal.