Custodian REIT plc : Purchase of Land with Pre-let Development

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 Custodian REIT plc (CREI) 
Custodian REIT plc : Purchase of Land with Pre-let Development 
 
02-March-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. 
 
            2 March 2018 
 
      Custodian REIT plc 
 
      ("Custodian REIT" or "the Company") 
 
      Purchase of Land with Pre-let Development 
 
  Custodian REIT (LSE: CREI), the UK property investment company, is pleased 
     to announce the completion of a forward funding agreement for a pre-let 
            development, together with the purchase of the development land. 
 
 The Company has acquired 0.4 acres of land in Maypole, Birmingham, adjacent 
        to the busy A435 Alcester Road, one of the main arterial routes into 
            Birmingham city centre. 
 
 The development will comprise an 1,800 sq ft drive-through coffee shop with 
     16 parking spaces and construction is being phased over an expected six 
            month build period. 
 
 The unit, to be developed by Deeley Properties Limited, has been pre-let to 
    Starbucks Coffee UK Limited on a 15 year lease, without break, with five 
yearly upward only market rent reviews. On completion of the development for 
      a total consideration of GBP1.75 million, the total passing rent will be 
             GBP120,000 per annum reflecting a net initial yield[1] of 6.43%. 
 
       The land purchase price of GBP1.0 million was funded from the Company's 
existing cash facilities, resulting in net gearing2 increasing to 21.7% loan 
            to value. 
 
 Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of 
 Custodian Capital Limited (the Company's discretionary investment manager), 
            said: 
 
  "The growth of drive-through stores is being driven by the likes of Costa, 
   Starbucks and Greggs and is proving popular with retailers and customers, 
       which is leading to rental growth in the sector. The location of this 
 property on an arterial access route for Birmingham city centre allows easy 
 accessibility for traffic both entering and leaving the City, enhancing the 
            site's offering." 
 
       1 Passing rent divided by valuation plus estimated purchaser's 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 principally 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 
Sequence No.:  5255 
 
End of Announcement EQS News Service 
 
659657 02-March-2018 
 
 
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(END) Dow Jones Newswires

March 02, 2018 02:03 ET (07:03 GMT)