Custodian REIT plc : Purchase of Property

Custodian REIT plc : Purchase of Property

WKN: A116ZH ISIN: GB00BJFLFT45 Custodian REIT plc

04.12.2018 08:00:07

Custodian REIT plc (CREI)
Custodian REIT plc : Purchase of Property

04-Dec-2018 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


 

 

4 December 2018

 

 

Custodian REIT plc

 

("Custodian REIT" or the "Company")

 

Purchase of Property

 

Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce a further property purchase. 

 

The Company has acquired the 44,844 sq ft Jubilee Close Retail Park in Weymouth, comprising three units occupied by B&Q, Halfords and Sports Direct with nearby retailers including Currys, KFC and Matalan.

 

The units' have a weighted average unexpired lease term to first break or expiry of 7.8 years.  Current aggregate passing rent is £803,000, reflecting a net initial yield1 of 6.97%.

 

The agreed purchase price of £10.8 million was funded from the Company's existing debt resources, resulting in net gearing2 increasing to 25.5% loan to value.

 

Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's discretionary investment manager), said:

 

"Despite the investment market's aversion to the retail sector, we believe that these occupiers will continue to prosper despite challenges from on-line sales and with nearly 8 years contractual income, strong trading performances and a 7% initial yield, this property meets our investment criteria.

 

"We believe well located retail warehouse properties which either do not compete with on-line retailing or are complementary, through offering easy click and collect services, will remain in demand despite the current restructuring of the retail market."

 

1 Passing rent divided by valuation plus assumed purchasers' costs.

2 Gross borrowings less unrestricted cash divided by last published property portfolio valuation.

 

-Ends-

For further information, please contact:

 

Custodian Capital Limited

 

Richard Shepherd-Cross / Nathan Imlach / Ian Mattioli MBE

Tel: +44 (0)116 240 8740

 

www.custodiancapital.com

 

 

Numis Securities Limited

 

Nathan Brown / Hugh Jonathan

Tel: +44 (0)20 7260 1000

 

www.numiscorp.com

 

 

Camarco

 

Ed Gascoigne-Pees

Tel: +44 (0)20 3757 4984

 

www.camarco.co.uk

 

Notes to Editors

 

Custodian REIT plc is a UK real estate investment trust, which listed on the main market of the London Stock Exchange on 26 March 2014.  Its portfolio comprises properties predominantly let to institutional grade tenants on long leases throughout the UK and is characterised by properties with individual values of less than £10 million at acquisition. 

 

The Company offers investors the opportunity to access a diversified portfolio of UK commercial real estate through a closed-ended fund.  By targeting sub £10 million lot size, regional properties, the Company intends to provide investors with an attractive level of income with the potential for capital growth. 

 

Custodian Capital Limited is the discretionary investment manager of the Company. 

 

For more information visit www.custodianreit.com and www.custodiancapital.com.



ISIN: GB00BJFLFT45
Category Code: MSCH
TIDM: CREI
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.: 6740
EQS News ID: 753957

 
End of Announcement EQS News Service

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