Custodian REIT plc : Purchase of Property (1158655)

 
 Custodian REIT plc (CREI) 
Custodian REIT plc : Purchase of Property 
 
05-Jan-2021 / 16:30 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 January 2021 
 
      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 Willow Court, a 22,545 sq ft office building on 
Minns Business Park, one mile west of Oxford city centre and adjacent to the 
    A34, which connects the M4 and M40. Other occupants of the business park 
   include Oxford University Innovation, Barclays, Savills, Blake Morgan and 
            Knights LLP. 
 
      The property comprises four floors let to RBS, Dehns, Charles Stanley, 
Oxentia and the Smith Institute with a weighted average unexpired lease term 
   to first break or expiry of 4 years and an aggregate rent of GBP537,496 per 
            annum, reflecting a net initial yield[1] of 6.41%. 
 
    The agreed purchase price of GBP7.86 million was funded from the Company's 
   existing debt facilities, resulting in net gearing[2] increasing to 24.4% 
            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 secured this office building in a proven location 
  with a strong tenant line-up. Due to local development restrictions office 
supply in the vicinity has a history of high demand. The modern and recently 
   refurbished property also has potential asset management opportunities to 
            enhance value and extend its income profile." 
 
       1 Passing rent divided by valuation plus estimated purchaser's costs. 
 
          2 Gross borrowings less cash (excluding tenant rental deposits and 
            retentions) divided by last published property portfolio value. 
 
      -Ends- 
 
For further information, please contact: 
 
             Custodian Capital Limited 
Richard Shepherd-Cross / Ed Moore /     Tel: [phone] 
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 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 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]. 
 
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ISIN:          GB00BJFLFT45 
Category Code: MSCU 
TIDM:          CREI 
LEI Code:      2138001BOD1J5XK1CX76 
Sequence No.:  90872 
EQS News ID:   1158655 
 
End of Announcement EQS News Service 
 
 
1: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=c24dec6d0ea6c746569ddd52de0eca8d&application_id=1158655&site_id=vwd&application_name=news 
2: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=44eae66ce326b2005a19503bbab5faed&application_id=1158655&site_id=vwd&application_name=news 
 

(END) Dow Jones Newswires

January 05, 2021 11:30 ET (16:30 GMT)