Custodian REIT plc : Purchase of Property (753957)

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 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 GBP803,000, reflecting 
            a net initial yield1 of 6.97%. 
 
    The agreed purchase price of GBP10.8 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         Tel: [phone] 
Imlach / Ian Mattioli MBE 
                                    www.custodiancapital.com [1] 
 
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 [2] and 
            www.custodiancapital.com [1]. 
 
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 
 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c24dec6d0ea6c746569ddd52de0eca8d&application_id=753957&site_id=vwd_london&application_name=news 
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=44eae66ce326b2005a19503bbab5faed&application_id=753957&site_id=vwd_london&application_name=news 
 

(END) Dow Jones Newswires

December 04, 2018 02:01 ET (07:01 GMT)