Custodian REIT plc : Purchase of Property

Custodian REIT plc : Purchase of Property

WKN: A116ZH ISIN: GB00BJFLFT45 Custodian REIT plc

17.12.2018 08:00:07

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

17-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.


 

 

17 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 a 14,926 sq ft Volkswagen car dealership, situated prominently on Belton Road, the prime dealership, trade and retail warehouse location in Loughborough, one mile from the town centre and three miles from junction 23 of the M1.  Car dealerships in the vicinity include Peugeot, Toyota, Nissan, Inchcape Mercedes-Benz, Vauxhall and Kia.

 

The property is let to Lister Group Limited on a lease expiring on 30 November 2038, subject to a break in 2028, with a current passing rent of £160,000 per annum, reflecting a net initial yield1 of 6.37%.  The lease benefits from rent reviews linked to RPI, subject to a cap of 3.0% per annum rental growth.

 

The agreed purchase price of £2.36 million was funded from the Company's existing debt resources, resulting in net gearing2 increasing to 25.7% loan to value.

 

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

 

"This opportunity in Loughborough's prime motor trade pitch, let to a strong tenant, on a long-term lease, including RPI linked rent increases, provides income security and a strong reversionary yield.  We believe the property's prime location and low passing rent will provide the long-term opportunity that meets the investment criteria of Custodian REIT."

 

1 Passing rent divided by valuation plus estimated 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 principally 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.: 6902
EQS News ID: 758609

 
End of Announcement EQS News Service

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