Custodian REIT PLC Purchase of Property (3806I)

TIDMCREI

RNS Number : 3806I

Custodian REIT PLC

19 June 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 the 23,007 sq ft Wells Green Retail Park in Sheldon, five miles from Birmingham city centre on the busy A45 Coventry Road. The site comprises three units occupied by Dreams, Pets at Home and Halfords, with nearby retailers including Morrisons, Tesco, Topps Tiles and Aldi.

The units' leases expire on 28 September 2022, 26 September 2026 and 28 September 2027 respectively, with a total passing rent of GBP361,037 per annum reflecting a net initial yield(1) of 6.64%.

The agreed purchase price of GBP5.1 million was funded from the Company's existing cash resources, resulting in net gearing(2) increasing to 19.6% 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 secured this prominently located property within Sheldon's retail pitch and on one of the main arterial routes into Birmingham city centre. Halfords has recently signed a reversionary lease, demonstrating their dedication to the location. With strong occupier interest being experienced at the proposed Sheldon Retail Park development, the area is showing signs of strong future growth potential."

(1) Passing rent divided by valuation plus assumed purchasers' costs.

(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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