A 55,713 sq ft leisure park in Crewe has been acquired in a £6.6m deal.
Custodian REIT has purchased Phoenix Leisure Park, which comprises four freehold units occupied by Pizza Hut, Mecca Bingo, Odeon Cinemas and MFA Bowl, near Grand Junction Retail Park and within walking distance of the town centre and railway station.
The units' leases expire between June 2030 and March 2040 with a total passing rent of £523,625 per year, reflecting a net initial yield of 7.5 per cent.
The agreed purchase price of £6.6m was funded from the company's cash resources following an issue of new shares in December 2015, which raised £44.25m before costs and expenses.
Richard Shepherd-Cross, managing director of Custodian Capital, the company's discretionary investment manager, said: "We are delighted to have secured this recently refurbished restaurant and leisure park that adds further long-term income to the company's portfolio at a price which demonstrates the value of small lot size regional property.
"Crewe is dominated by two established out-of-town parks, Phoenix Leisure Park and Grand Junction. A McDonald's restaurant and Hungry Horse public house have recently opened in the vicinity, which further establish the location."
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