Custodian REIT PLC Purchase of Land with Pre-let Development (1560P)
June 04 2015 - 2:00AM
UK Regulatory
TIDMCREI
RNS Number : 1560P
Custodian REIT PLC
04 June 2015
4 June 2015
Custodian REIT plc
("Custodian REIT" or "the Company")
Purchase of Land with Pre-let Development
Custodian REIT (LSE: CREI), the UK property investment company,
is pleased to announce the completion of a forward funding
agreement for a pre-let development, together with the purchase of
the development land.
The Company has acquired 1.88 acres of land at the Tournament
Fields development, two miles south west of Warwick at junction 15
of the M40. The location allows easy access to the motorway
network, mainline rail services (via Warwick Parkway station) and
is close to Birmingham International Airport. Other occupiers on
the business park include Eagle Burgmann, Geberit, Pure Offices and
West Midlands Ambulance Service.
The development comprises a 27,400 sq ft single storey
industrial/warehouse unit, with construction being phased over an
expected five month build period. Development funding will be drawn
down via monthly certified payments.
The unit, to be developed by Clowes Developments, has been
pre-let to Semcon Product Information UK Limited on a 10.5 year
lease with no break option. On completion of the development for a
total consideration of GBP2.635 million, the total passing rent
will be GBP180,000, reflecting a net initial yield of 6.64%.
The agreed land purchase price of GBP0.85 million was funded
from the Company's existing facilities, with net borrowings
following the acquisition of 11.1% loan to value.
Commenting on the acquisition, Richard Shepherd-Cross, Managing
Director of Custodian Capital Limited (the Company's external fund
manager), said: "The current shortfall in supply of quality
industrial units has led to increased demand for development
funding of this kind throughout the UK. This opportunity was of
particular interest due to a well located unit and strong tenant on
a long term lease. We anticipate further investment in pre-let
development projects while the requirement for good quality units
in areas of high demand continues."
- Ends -
For further information:
Further information regarding the Company can be found at the
Company's website www.custodianreit.com or please contact:
Custodian Capital Limited
Richard Shepherd-Cross / Nathan Tel: +44 (0)116 240
Imlach / Ian Mattioli 8740
www.custodiancapital.com
Numis Securities Limited
Nathan Brown / Hugh Jonathan Tel: +44 (0)20 7260
1000
www.numiscorp.com
Camarco
Ed Gascoigne-Pees Tel: +44 (0)20 3757
4984
www.camarco.co.uk
Notes to Editors
Custodian REIT plc is a UK real estate investment trust ("REIT")
listed on the London Stock Exchange. Its portfolio consists of
properties let to institutional grade tenants on long leases
throughout the UK.
It invests in a diversified portfolio of UK commercial
properties to achieve its investment objective of providing
shareholders with an attractive level of income together with the
potential for capital growth through a closed-ended fund.
The target portfolio is characterised by small lot sizes with
individual property values of less than GBP7.5 million at
acquisition.
Custodian Capital Limited is the discretionary investment
manager of the Company.
For more information visit www.custodianreit.com and
www.custodiancapital.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQEAKKDEFLSEFF
Custodian Property Incom... (LSE:CREI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Custodian Property Incom... (LSE:CREI)
Historical Stock Chart
From Jul 2023 to Jul 2024