Custodian cuts deal for Scottish sawmill

Custodian REIT has paid £7.5m for a Scottish sawmill. The 87,000 sq ft industrial facility in Grangemouth, Falkirk, is let to Thornbridge Sawmills for a further 18 years at a passing rent of £388,261 pa. A reversion in September 2023, linked to RPI, is expected to reflect a net reversionary yield of 5.5%. The deal was funded from the REIT’s existing debt facilities, resulting in net gearing increasing to 20.9% LTV. Richard Shepherd-Cross, managing director at Custodian Capital, said: “We are delighted to have secured this property, which benefits from excellent links to both Glasgow and Edinburgh but, importantly for the tenant, which imports timber, is in close proximity to Scotland’s largest container port.”   To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews