Custodian REIT Acquires £8.5m Family Property Portfolio

Custodian Property Income REIT plc has strategically acquired a majority-share in a family property portfolio valued at £8.5 million. This marks the company’s third acquisition this financial year of a diversified family-owned portfolio, enhancing its investment strategy. The portfolio promises significant rental growth potential, with an expected 43% increase upon review.

The acquisition of Scorpion Properties Limited includes five single-let industrial properties located in the South Midlands, boasting a 100% occupancy rate. Tenants include Steer Automotive and Euro Car Parts, contributing an annual rent of £0.6 million. The transaction was completed with 4.9 million shares and settlement of existing debts.

The net initial yield from this portfolio is approximately 6.8%, with a reversionary yield of 9.7% projected over 2.6 years. This acquisition aligns with Custodian REIT’s strategy of targeting smaller, regional properties, offering tax-efficient solutions for family property firms.