Custodian REIT plc : Purchase of Property (758609)

Dow Jones received a payment from EQS/DGAP to publish this press release.

 
 
 Custodian REIT plc (CREI) 
Custodian REIT plc : Purchase of Property 
 
17-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. 
 
            17 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 a 14,926 sq ft Volkswagen car dealership, situated 
prominently on Belton Road, the prime dealership, trade and retail warehouse 
location in Loughborough, one mile from the town centre and three miles from 
     junction 23 of the M1. Car dealerships in the vicinity include Peugeot, 
            Toyota, Nissan, Inchcape Mercedes-Benz, Vauxhall and Kia. 
 
       The property is let to Lister Group Limited on a lease expiring on 30 
   November 2038, subject to a break in 2028, with a current passing rent of 
     GBP160,000 per annum, reflecting a net initial yield1 of 6.37%. The lease 
benefits from rent reviews linked to RPI, subject to a cap of 3.0% per annum 
            rental growth. 
 
    The agreed purchase price of GBP2.36 million was funded from the Company's 
 existing debt resources, resulting in net gearing2 increasing to 25.7% loan 
            to value. 
 
 Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of 
 Custodian Capital Limited (the Company's discretionary investment manager), 
            said: 
 
"This opportunity in Loughborough's prime motor trade pitch, let to a strong 
 tenant, on a long-term lease, including RPI linked rent increases, provides 
  income security and a strong reversionary yield. We believe the property's 
  prime location and low passing rent will provide the long-term opportunity 
            that meets the investment criteria of Custodian REIT." 
 
       1 Passing rent divided by 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, 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 
OAM Categories: 3.1. Additional regulated information required to be 
                disclosed under the laws of a Member State 
Sequence No.:   6902 
EQS News ID:    758609 
 
End of Announcement EQS News Service 
 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c24dec6d0ea6c746569ddd52de0eca8d&application_id=758609&site_id=vwd_london&application_name=news 
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=44eae66ce326b2005a19503bbab5faed&application_id=758609&site_id=vwd_london&application_name=news 
 

(END) Dow Jones Newswires

December 17, 2018 02:01 ET (07:01 GMT)