Custodian REIT PLC Purchase of Property (7564Q)
June 22 2015 - 2:00AM
UK Regulatory
TIDMCREI
RNS Number : 7564Q
Custodian REIT PLC
22 June 2015
22 June 2015
Custodian REIT plc
("Custodian REIT" or "the Company")
Purchase of Property
Custodian REIT (LSE: CREI), the UK property investment company,
is pleased to announce the acquisition of a mixed use portfolio of
10 properties.
The Company has acquired a national portfolio of six high street
shops with an average lot size of GBP1.21 million and four
industrial units with an average lot size of GBP1.83 million.
Locations include Chester, St Albans, Bristol, Farnborough and
Kettering and tenants within the portfolio include BSS Plc, EE
Limited, Kuoni Travel Limited, Shoe Zone Limited, Wilko Retail
Limited and Waterstones Booksellers Limited.
The agreed purchase price of GBP14.6 million was funded from the
Company's existing credit facilities, with net borrowings following
the acquisition increasing to 16.7% loan to value.
The portfolio's current passing rent of GBP1.12 million reflects
a net initial yield of 7.27% with an average weighted unexpired
lease term of 6.2 years. There are ongoing negotiations with two
tenants to re-gear short, unexpired lease terms, with the potential
to extend leases with existing tenants.
Commenting on the acquisition, Richard Shepherd-Cross, Managing
Director of Custodian Capital Limited (the Company's discretionary
investment manager), said:
"Custodian REIT's investment strategy of targeting small lot
size property makes this portfolio an excellent fit. Despite
widespread price inflation in the market, the Company's strategy is
proving resilient in delivering a high income return from a
well-diversified portfolio, in locations with low vacancy rates
that have future rental growth potential."
-Ends-
For further information, please contact:
Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach Tel: +44 (0)116 240
/ Ian Mattioli 8740
www.custodiancapital.com
Numis Securities Limited
Nathan Brown / Hugh Jonathan Tel: +44 (0)20 7260
1000
www.numiscorp.com
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 small lot sizes, with individual property values
of less than GBP7.5 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 and
www.custodiancapital.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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