Custodian REIT PLC Purchase of Property (3178R)
March 08 2016 - 2:00AM
UK Regulatory
TIDMCREI
RNS Number : 3178R
Custodian REIT PLC
08 March 2016
8 March 2016
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 the 34,121 sq ft St. Catherine's
Leisure Park in Perth, comprising three units let to Bannatyne
Fitness Limited, Scotco (Eastern) Limited (trading as KFC) and The
Restaurant Group (UK) Limited (trading as Frankie and Benny's). The
park is within walking distance of the town centre and railway
station, and is adjacent to St. Catherine's Retail Park, whose
occupiers include Curry's PC World, Dunelm Mill, Halfords, Home
Bargains, Maplin, Sports Direct and T K Maxx.
The units' leases expire between July and August 2026 with a
current passing rent of GBP389,115 per annum in aggregate,
reflecting a net initial yield of 8.17%.
The agreed purchase price of GBP4.5 million was funded from the
Company's existing debt facilities, resulting in net borrowings
increasing to 20.2% 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 leisure park with all
three units let to strong tenants on leases with over 10 years to
expiry, which enhances the Company's lease expiry profile. All
three tenants have rent reviews this year and we believe the
properties have reversionary potential. The park is well located
next to St. Catherine's Retail Park, making this a sought after
location for retail and leisure operators alike. Plans for a nearby
cinema development, if completed, will further strengthen the
area."
-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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