Custodian REIT PLC Purchase of Property (6642S)
December 23 2016 - 2:01AM
UK Regulatory
TIDMCREI
RNS Number : 6642S
Custodian REIT PLC
23 December 2016
23 December 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 37,598 sq ft health and fitness
centre on George Eastham Avenue, Stoke-on-Trent, located at the
junction of the A50 and A500 which links to junctions 15 and 16 of
the M6. The property is adjacent to the Stoke City Football Club
stadium, a Holiday Inn, Harvester and Audi, Lexus and Volkswagen
car dealerships.
The unit is let to Greens Health & Fitness Limited (trading
as Nuffield Health) on a lease expiring on 18 April 2025, with
current passing rent of GBP349,209 per annum reflecting a net
initial yield of 6.75%.
The agreed purchase price of GBP4.855 million, was funded from
the Company's existing debt facilities, resulting in net gearing(1)
increasing to 18.0% 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 high specification,
purpose built health and fitness centre in an established and
prominent location with more than eight years remaining on the
lease. The tenant has demonstrated a strong commitment to the
location and we believe there is reversionary potential at the 2020
rent review. This property adds further diversification to the
portfolio. "
-Ends-
1 Gross borrowings less unrestricted cash divided by last
published property portfolio valuation.
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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