Custodian REIT PLC Purchase of Property (0482F)

TIDMCREI

RNS Number : 0482F

Custodian REIT PLC

15 May 2017

15 May 2017

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 three units within the 33,270 sq ft Coypool retail park in Plymouth, near the town centre and adjacent to the A38 Devon Expressway. The units are occupied by Oak Furniture Land, SCS and McDonald's, with nearby retailers including Bensons for Beds, B&M, Harveys Furniture, Next Home and DFS.

The units' leases expire on 6 June 2025, 13 October 2026 and 28 September 2031 respectively with a total passing rent of GBP538,226 per annum, reflecting a net initial yield(1) of 6.74%.

The agreed purchase price of GBP7.487 million was funded from the Company's existing debt resources, resulting in net gearing(2) increasing to 18.3% loan to value.

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

"We are delighted to have secured this prominently located property within Plymouth's principal retail warehouse location. SCS and Oak Furniture Land have both installed comprehensive mezzanine trading areas and all three tenants have recently committed to the location by agreeing to long term leases. This acquisition further diversifies our tenant mix through the addition of three strong, nationally established tenants."

(1) Portfolio passing rent divided by portfolio 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 /   Tel: [phone] 
  Ian Mattioli MBE 
                                            www.custodiancapital.com 
 
 
 Numis Securities Limited 
 Nathan Brown / Hugh Jonathan   Tel: [phone] 
                                       www.numiscorp.com 
 
 
 Camarco 
 Ed Gascoigne-Pees   Tel: [phone] 
                            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 GBP10 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 GBP10 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.

This information is provided by RNS

The company news service from the London Stock Exchange

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May 15, 2017 02:01 ET (06:01 GMT)