Custodian REIT PLC Purchase of Property (0754M)

TIDMCREI

RNS Number : 0754M

Custodian REIT PLC

26 July 2017

26 July 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 30,404 sq ft retail warehouse on Snipe Retail Park, Ashton-under-Lyne, adjacent to junction 23 of the M60. The unit is occupied by B&M Bargains Limited, with nearby retailers including B&Q, Halfords, Home Bargains, Dunelm, Argos and Harveys.

The unit's lease expires on 8 January 2032 with a current passing rent of GBP421,330 per annum, reflecting a net initial yield of 6.00%.

The agreed purchase price of GBP6.6 million was funded from the Company's existing cash resources, resulting in net gearing(2) increasing to 20.8% 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 the Snipe Retail Park, a well established Manchester out of town retail park. B&M is a strong nationally established tenant which dominates its sub-market. The unit has recently undergone a comprehensive refurbishment with B&M agreeing to a long-term lease with a 14.5 years unexpired term, demonstrating its commitment to the unit and location."

(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 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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July 26, 2017 02:00 ET (06:00 GMT)