Custodian REIT PLC Purchase of Property (4718Z)
May 27 2016 - 2:00AM
UK Regulatory
TIDMCREI
RNS Number : 4718Z
Custodian REIT PLC
27 May 2016
27 May 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 a 55,236 sq ft, high bay distribution
unit on Relay Park, Tamworth, located at junction 10 of the M42
with excellent links to the M6 and M1. Nearby occupiers include
Sainsbury's, Aldi, Yusen Logistics, XPO Logistics and Headlam
Distribution.
The unit is let to Schenker Limited (trading as DB Schenker), a
subsidiary of Deutsche Bahn, on a lease expiring on 27 September
2017.
The agreed purchase price of GBP4.7 million was funded from the
Company's existing debt facilities, resulting in net borrowings
increasing to 12.7% 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 high quality, modern unit
within the 'Golden Triangle' of UK distribution. The passing rent
is GBP280,000 per annum but we forecast rent exceeding GBP345,000
in 2017, reflecting a reversionary yield of circa 7%. This
acquisition further demonstrates the relative value of sub-GBP10
million assets in a market where large distribution units can
achieve prices reflecting yields of less than 5%."
-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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