Custodian REIT PLC buys office building close to Oxford city centre

PLC () said it has purchased an office building one mile west of Oxford city centre for £7.86mln.

The UK property investment company has acquired Willow Court, a 22,545 square feet office building on Minns Business Park, adjacent to the A34, which connects the M4 and M40.

The property comprises four floors let to RBS, Dehns, , Oxentia and the Smith Institute with a weighted average unexpired lease term to first break or expiry of four years and an aggregate rent of £537,496 per annum, reflecting a net initial yield of 6.41%.

The purchase will be funded from the company’s existing debt facilities, resulting in the net gearing increasing to 24.4% loan-to-value.

“We are delighted to have secured this office building in a proven location with a strong tenant line-up. Due to local development restrictions office supply in the vicinity has a history of high demand. The modern and recently refurbished property also has potential asset management opportunities to enhance value and extend its income profile,” said Richard Shepherd-Cross, the managing director of Custodian Capital, the real estate investment trust’s discretionary investment manager, in a statement.