Ediston Property Investment Company plc (LSE: EPIC) announces that it has exchanged contracts to acquire a B&Q Extra retail warehouse in Coatbridge, Scotland, from Harcourt Life Assurance Company Limited for £16.80 million (net of acquisition costs), which reflects a net initial yield of 7.46%.
The property extends to 103,000 sq. ft., 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 plc until December 2022 with a rent review in 2017, and offers a solid income stream for the Company, which can be further improved through asset management and development.
Calum Bruce, Director of Investment at Ediston Properties Limited, the Company’s Investment Adviser, said: “This acquisition provides the Company with good secure income in the retail warehouse sector. 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.”