Custodian REIT PLC Purchase of Property (8068L)
October 06 2016 - 2:00AM
UK Regulatory
TIDMCREI
RNS Number : 8068L
Custodian REIT PLC
06 October 2016
6 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 92,672 sq ft distribution unit on
Centrum 100 Business Park, Burton upon Trent, located close to the
A38 and A50 with links to the M1, M6 and M42. Nearby occupiers
include Boots, DHL, Clipper Logistics and Palletforce.
The unit is let to Kings Road Tyres and Repairs Limited on a
lease expiring on 26 July 2031, subject to a tenant's option to
break in 2021. Current passing rent is GBP509,696 per annum
reflecting a net initial yield of 6.77%.
The agreed purchase price of GBP7.06 million was funded from the
Company's existing debt facilities, resulting in net gearing(1)
increasing to 22.6% 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 acquired this modern unit located in
the 'Golden Triangle' of UK distribution. The Midlands is
experiencing significant demand for high quality units with good
communication links, demonstrated by the strong list of occupiers
on this park. We expect these factors to lead to high demand and
future rental growth."
(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
ACQUGGQAUUPQGCA
(END) Dow Jones Newswires
October 06, 2016 02:00 ET (06:00 GMT)
Custodian Property Incom... (LSE:CREI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Custodian Property Incom... (LSE:CREI)
Historical Stock Chart
From Sep 2023 to Sep 2024