Custodian REIT plc : Purchase of Property (691753)

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 Custodian REIT plc (CREI) 
Custodian REIT plc : Purchase of Property 
 
04-Jun-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 June 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 a 77,242 sq ft health and fitness centre in 
         Lincoln, prominently located on the A46 within a leading mixed use, 
 out-of-town scheme with businesses in the immediate vicinity including Ibis 
            Hotel, Fayre & Square and Frankie & Benny's. 
 
The unit is let to Total Fitness Health Clubs Limited on a lease expiring on 
       22 June 2040, subject to a tenant-only break on 22 June 2035. Current 
passing rent is GBP350,000 per annum reflecting a net initial yield1 of 7.64%. 
 
     The agreed purchase price of GBP4.3 million was funded from the Company's 
 existing debt resources, resulting in net gearing2 increasing to 22.4% 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 acquired this high specification, purpose-built 
  health and fitness centre in an established and prominent location with an 
    unexpired lease term to first break of 17 years. The tenant has recently 
 undertaken an extensive internal refurbishment, highlighting its confidence 
            in the continued performance of the location." 
 
      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         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 with a portfolio 
      comprising properties predominantly let to institutional grade tenants 
  throughout the UK, principally characterised by properties with individual 
             values of less than GBP10m at acquisition. 
 
        The Company offers investors the opportunity to access a diversified 
      portfolio of UK commercial real estate through a closed-ended fund. By 
    principally targeting sub GBP10m lot size regional properties, the Company 
     intends to provide investors with an attractive level of income and the 
   potential for capital growth, becoming the REIT of choice for private and 
            institutional investors seeking high and stable dividends from 
            well-diversified UK real estate. 
 
    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.:  5612 
EQS News ID:   691753 
 
End of Announcement EQS News Service 
 
 
1: http://public-cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c24dec6d0ea6c746569ddd52de0eca8d&application_id=691753&site_id=vwd_london&application_name=news 
2: http://public-cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=44eae66ce326b2005a19503bbab5faed&application_id=691753&site_id=vwd_london&application_name=news 
 

(END) Dow Jones Newswires

June 04, 2018 02:00 ET (06:00 GMT)