Custodian REIT PLC Purchase of Property Portfolio (7476B)
June 21 2016 - 2:00AM
UK Regulatory
TIDMCREI
RNS Number : 7476B
Custodian REIT PLC
21 June 2016
21 June 2016
Custodian REIT plc
("Custodian REIT" or "the Company")
Purchase of Property Portfolio
Custodian REIT (LSE: CREI), the UK property investment company,
is pleased to announce the acquisition of an GBP11.5 million
portfolio of three properties ("the Portfolio").
The Portfolio comprises:
-- 25,471 sq ft office on Pegasus Business Park, Castle
Donington, adjacent to East Midlands Airport and Junction 23A of
the M1, let to National Grid plc with an unexpired lease term of
6.2 years;
-- 16,470 sq ft office in Cheadle, Greater Manchester, at
Junction 3 of the M60 and nine miles from Manchester Airport, let
to Wienerberger Limited with an unexpired lease term of 2.1 years;
and
-- 119,600 sq ft industrial unit in Wolverhampton, four miles
from Junction 1 of the M54, let to Assa Abloy Limited with an
unexpired lease term of 2.1 years.
The Portfolio's current passing rent of GBP0.99 million reflects
a net initial yield of 8.04%, with an expected reversionary yield
of 9.63%.
The purchase price of GBP11.5 million was funded from the
Company's cash resources, following the drawdown of a new GBP45
million term loan on 6 June 2016. Net gearing(1) following the
acquisition has increased to 14.9%.
Commenting on the transaction, Richard Shepherd-Cross, Managing
Director of Custodian Capital Limited (the Company's discretionary
investment manager), said:
"We are very pleased to have secured the Portfolio which is well
aligned to our investment strategy, comprising good quality,
smaller lot size, regional office and industrial assets. The
properties are single let and occupied by strong tenants that are
committed to the locations. The Portfolio also offers the potential
for proactive asset management, with a number of opportunities
identified and explored with stakeholders during the due diligence
process."
(1) Gross borrowings less unrestricted cash divided by property
portfolio valuation.
-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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