Custodian REIT PLC Purchase of Property (9149E)
May 12 2017 - 2:00AM
UK Regulatory
TIDMCREI
RNS Number : 9149E
Custodian REIT PLC
12 May 2017
12 May 2017
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 27,480 sq ft car dealership, located
within York's 'motor alley' two miles from York city centre and
adjacent to the A1237 ring road. Nearby occupiers include Vauxhall,
Audi, BMW, Mercedes-Benz, Toyota and Volkswagen.
The property is let to Pendragon Property Holdings Limited
(trading as Evans Halshaw Peugeot and Citroen) on a lease expiring
on 27 February 2030 with a current passing rent of GBP240,000 per
annum, reflecting a net initial yield(1) of 5.75%.
The agreed purchase price of GBP3.92 million was funded from the
Company's existing debt facilities, resulting in net gearing(2)
increasing to 16.2% 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,
well-established within York's premier motor retail pitch and let
to the UK's largest motor retailer on a long-term lease. Despite a
keen net initial yield we believe the property will show a
reversionary yield of circa 6.75% following the 2020 rent review,
as prevailing market rents are comfortably in excess of the current
passing rent. The demand for this location is undoubted with Jaguar
Land Rover having recently submitted planning for the development
of a new dealership diagonally opposite the site."
(1) Portfolio passing rent divided by portfolio valuation plus
estimated purchasers' costs of 6.5%.
(2) 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 Imlach / Tel: +44 (0)116 240 8740
Ian Mattioli MBE
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 properties with individual 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 sub GBP10 million lot size,
regional 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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