Custodian REIT plc : Purchase of Property (747315)

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 Custodian REIT plc (CREI) 
Custodian REIT plc : Purchase of Property 
 
19-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. 
 
            19 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 the 43,000 sq ft Evesham Shopping Park, one mile 
from Evesham town centre and two miles from the A46, linking the M5 and M40. 
    The park comprises a terrace of five units occupied by Next, M&S, Boots, 
   Argos and Poundstretcher, with nearby retailers including Tesco, and B&M. 
 
   The units' have a weighted average unexpired lease term to first break or 
 expiry of 6.8 years and a price reflecting a net initial yield[1] of 6.04%. 
 
    The agreed purchase price of GBP14.2 million was funded from the Company's 
    existing debt resources, resulting in net gearing[2] increasing to 22.8% 
            loan to value. 
 
 Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of 
 Custodian Capital Limited (the Company's discretionary investment manager), 
            said: 
 
"Both Next and Boots have recently extended their leases at the passing rent 
      indicating their commitment to the location. B&M Bargains has recently 
    constructed a 25,000 sq ft unit adjacent to the park, demonstrating that 
        together with the Tesco Extra opposite this is the prime out of town 
     location in Evesham. We are pleased to have secured this opportunity to 
 acquire a very well-let park at a price which reflects a discount to recent 
            market pricing. 
 
   "We believe well located, out-of-town, retail warehouse properties which, 
  either do not compete with on-line retailing or are complimentary, through 
  offering easy click and collect services will remain in demand despite the 
   current restructuring of the retail market. This acquisition presented an 
            opportunity to buy a prime asset, let to blue chip tenants, at a 
            sufficiently high yield to support our fully covered dividend." 
 
         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:  ACQ 
TIDM:           CREI 
LEI Code:       2138001BOD1J5XK1CX76 
OAM Categories: 3.1. Additional regulated information required to be 
                disclosed under the laws of a Member State 
Sequence No.:   6576 
EQS News ID:    747315 
 
End of Announcement EQS News Service 
 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c24dec6d0ea6c746569ddd52de0eca8d&application_id=747315&site_id=vwd_london&application_name=news 
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=44eae66ce326b2005a19503bbab5faed&application_id=747315&site_id=vwd_london&application_name=news 
 

(END) Dow Jones Newswires

November 19, 2018 02:01 ET (07:01 GMT)