Custodian REIT PLC Purchase of Property (1944G)
August 04 2016 - 2:00AM
UK Regulatory
TIDMCREI
RNS Number : 1944G
Custodian REIT PLC
04 August 2016
4 August 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 105,757 sq ft distribution unit on
Winsford Industrial Estate, located 10 miles from junctions 18 and
19 of the M6. Nearby occupiers include Henkel, Iveco and Jiffy
Packaging.
The unit is let to H&M Hennes and Mauritz UK Limited on a
lease expiring on 23 June 2025. Current passing rent is GBP423,000
per annum reflecting a net initial yield of 7.15%, with an expected
reversionary yield of circa 8.5%.
The agreed purchase price of GBP5.55 million was funded from the
Company's existing cash resources, resulting in net gearing(1)
increasing to 13.9% 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 modern, well located unit
let to a market leading high street retailer. This recently
refurbished unit is one of H&M's three UK distribution
locations and includes circa 1.8 acres of potential expansion land
to meet future requirements."
(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 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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