Custodian REIT acquires York car dealership for £3.92m

UK property investment company Custodian REIT has acquired a 27,480 sq ft car dealership, in York's 'motor alley' for £3.92m.

'Motor alley' is about two miles from York city centre. Nearby occupiers include Vauxhall, Audi, BMW, Mercedes-Benz, Toyota and Volkswagen.

Custodian REIT said the property was let to Pendragon Property Holdings Ltd, which was trading as Evans Halshaw Peugeot and Citroen.

The lease was due to expire in 2030, and had a current passing rent of £240,000 a year, reflecting a net initial yield1 of 5.75%.

The agreed purchase price of £3.92m was funded from the company's existing debt facilities, resulting in net gearing increasing to 16.2% loan-to-value.

At 12:32 BST, shares in Custodian REIT were up 0.22% to 111.5p each.