Custodian REIT PLC Disposal of Property (5619F)
July 29 2016 - 2:00AM
UK Regulatory
TIDMCREI
RNS Number : 5619F
Custodian REIT PLC
29 July 2016
29 July 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 22,317 sq ft hotel on Castlegate Business
and Leisure Park, Dudley for GBP4.45 million, GBP0.34 million ahead
of the 31 March 2016 valuation. The property is let to Premier Inn
Hotels Limited on a lease expiring in 2038.
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 long term 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 an 8.3% valuation gain,
capitalising on market demand for long-term secure income and
securing a price reflecting a net initial yield of 5.0%. Contrary
to many open-ended property funds, a number of which have halted
redemptions to allow them time to sell properties to meet their
redemption obligations, this sale is part of our normal asset
management activity. We expect to redeploy the sale proceeds on our
committed pipeline, providing better long-term growth potential and
a higher running yield to enhance shareholder returns".
- 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 GBP10 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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