Custodian REIT PLC Purchase of Property (3575H)

TIDMCREI

RNS Number : 3575H

Custodian REIT PLC

17 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 44,606 sq ft of retail warehousing on County Road Retail Park, Swindon, near the town centre and railway station and within five miles of the M4. The site comprises two units let to Go Outdoors Limited and B & M Bargains Limited, with nearby occupiers including Tesco, Wickes, Lidl and T K Maxx.

The units' leases expire on 26 May 2021 and 8 February 2025 respectively with a total passing rent of GBP525,000 per annum, reflecting a net initial yield of 6.86%.

The agreed purchase price of GBP7.18 million was funded from the Company's existing cash resources, resulting in net gearing(1) increasing to 15.1% 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 prominent property adjacent to Tesco Extra and located in Swindon's highest density catchment area. B&M Bargains and Go Outdoors are both occupiers who are dominating their sub-markets and with a weighted average unexpired lease term of 7.5 years and unrestricted open A1 planning consent (including food) the units provide long-term income and flexibility regarding future use."

(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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