Custodian REIT plc : Purchase of Property (740887)

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 Custodian REIT plc (CREI) 
Custodian REIT plc : Purchase of Property 
 
05-Nov-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. 
 
            5 November 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 high street unit on The Grove in Stratford, East 
    London, comprising a ground floor retail unit with an upper floor office 
  suite. Nearby occupiers include Morrisons, Boots, Argos, Lidl and Nando's. 
 
 The property is let to Foxton's Estate Agents and The Incorporated Trustees 
 of the Universal Church of the Kingdom of God ("UCKG") with leases expiring 
  on 30 April 2031 and 2 May 2025 respectively and a current passing rent of 
             GBP150,935 per annum, reflecting a net initial yield[1] of 6.78%. 
 
     The agreed purchase price of GBP2.1 million was funded from the Company's 
    existing debt resources, resulting in net gearing[2] increasing to 20.6% 
            loan to value. 
 
 Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of 
 Custodian Capital Limited (the Company's discretionary investment manager), 
            said: 
 
   "Following the London 2012 Olympics, Stratford is now well established as 
         East London's most significant retail and leisure destination, with 
     completion of the Crossrail project due in December 2019 set to further 
enhance the area. Both tenants are committed to the location having recently 
     renewed their leases at higher rents and the resulting weighted average 
  unexpired lease term to first break of over eight years adds secure income 
        to the portfolio. The title provides the ability to use the adjacent 
     Morrison's car park without restriction, providing almost unlimited car 
     parking, which is a major selling point should the premises ever become 
            vacant." 
 
         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 
Hugh                                    Tel: [phone] 
Jonathan/Nathan 
Brown 
                                               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 small lot 
    sizes, with individual property 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 
       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 [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.:   6433 
EQS News ID:    740887 
 
End of Announcement EQS News Service 
 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c24dec6d0ea6c746569ddd52de0eca8d&application_id=740887&site_id=vwd_london&application_name=news 
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=44eae66ce326b2005a19503bbab5faed&application_id=740887&site_id=vwd_london&application_name=news 
 

(END) Dow Jones Newswires

November 05, 2018 02:02 ET (07:02 GMT)