Custodian REIT PLC Disposal of Property (2144N)
January 28 2016 - 2:00AM
UK Regulatory
TIDMCREI
RNS Number : 2144N
Custodian REIT PLC
28 January 2016
28 January 2016
Custodian REIT plc
("Custodian REIT" or the "Company")
Disposal of Property
Custodian REIT (LSE: CREI), the UK property investment company,
is pleased to announce the disposal of a property from its
portfolio.
The Company has sold a 7,333 sq ft purpose-built office on
Madison Place Business Park, Manchester for GBP1.35 million,
GBP0.15 million ahead of the 30 September 2015 valuation. Prior to
marketing, the lease term with Central Manchester University
Hospitals NHS Foundation Trust was extended from four years to 10
years.
The property was part of the initial portfolio acquired on the
Company's admission to the London Stock Exchange in 2014. The
Company intends to use the proceeds from the disposal to fund
acquisitions better aligned to its stated investment strategy.
Commenting on the disposal, Richard Shepherd-Cross, Managing
Director of Custodian Capital Limited (the Company's external fund
manager), said:
"We are delighted to have crystallised a 12.5% valuation gain,
following us pro-actively re-gearing the lease of this strong
tenant. The property was slightly sub-scale and we do not
anticipate this location experiencing significant rental growth in
the medium term. This is an example of how pro-active asset
management can enhance NAV and we have several similar initiatives
in progress with the joint aim of extending the average unexpired
lease term of the portfolio and growing NAV."
- Ends -
For further information, 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, 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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