Custodian REIT PLC Purchase of Property (1198I)

TIDMCREI

RNS Number : 1198I

Custodian REIT PLC

15 June 2017

15 June 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 a 69,922 sq ft distribution unit on Eurocentral, Scotland's leading mixed-use business park on the M8 arterial route between Glasgow and Edinburgh. Nearby occupiers include DHL, Warburtons, Argos, Wincanton, Norbert Dentressangle and Morrisons.

The unit is let to Next plc on a lease expiring on 6 March 2019. Current passing rent is GBP349,850 per annum reflecting a net initial yield(1) of 6.91%, with an expected reversionary yield of circa 7.9%.

The agreed purchase price of GBP4.75 million was funded from the Company's existing cash resources, resulting in net gearing(2) increasing to 18.6% 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 unit located on Scotland's prime distribution park and let to a market leading high street retailer. The unit is Next's only distribution location in Scotland, which has undergone substantial fit out including the installation of a mezzanine floor at the tenant's expense. The site also provides scope for future expansion of the unit should it be required."

(1) Passing rent divided by purchase price 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        Tel: [phone] 
  Imlach / Ian Mattioli MBE                            8740 
                                   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 small lot sizes, with individual property 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 smaller lot size 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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June 15, 2017 02:00 ET (06:00 GMT)