Custodian REIT PLC Purchase of Property (5170L)
October 04 2016 - 2:00AM
UK Regulatory
TIDMCREI
RNS Number : 5170L
Custodian REIT PLC
04 October 2016
4 October 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 36,168 sq ft retail warehouse in
Leighton Buzzard, located 10 miles from junction 12 of the M1.
Nearby occupiers include Tesco, Aldi and Waitrose.
The property is let to Homebase Limited on a lease expiring on
22 December 2023 with a current passing rent of GBP524,436 per
annum, reflecting a net initial yield of 6.91%.
The agreed purchase price of GBP7.12 million was funded from the
Company's existing debt facilities, resulting in net gearing(1)
increasing to 21.7% 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 property let to a
well-known retailer on a long-term lease. The property is centrally
located in Leighton Buzzard adjacent to a Tesco supermarket. The
town is experiencing significant growth with 1,330 dwellings
currently under construction in the area and a further 2,500
proposed in the next 10 years, which is very positive for retail
and commercial growth in the town."
(1) Gross borrowings less unrestricted cash divided by last
published 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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