Custodian REIT PLC Purchase of Property (3059L)

TIDMCREI

RNS Number : 3059L

Custodian REIT PLC

18 July 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 42,289 sq ft car dealership, located at the 'Pyramid Roundabout', Stockport one mile from the town centre on Junction 1 of the M60. Nearby occupiers include Audi, Volkswagen, Lexus, Hyundai and Mazda.

The property is let to Benham (Specialist Cars) Limited (t/a Williams Stockport BMW and Williams Stockport Mini) on a lease expiring on 23 August 2057 with break options every 10 years and RPI rental uplifts every five years. The current passing rent of GBP658,532 per annum, reflecting a net initial yield(1) of 6.99%, is expected to increase to circa GBP732,350 per annum at the August 2017 rent review, reflecting a reversionary yield of 7.77%.

The agreed purchase price of GBP8.84 million was funded from the Company's existing cash resources, resulting in net gearing(2) increasing to 20.0% 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 secured this property well-established within Stockport's premier motor retail pitch, let to a national motor retailer on a long-term lease. The lease has the benefit of RPI linked increases providing a strong reversionary yield."

(1) Portfolio passing rent divided by portfolio valuation plus estimated 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        Tel: +44 (0)116 240 
  Imlach / Ian Mattioli MBE                            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 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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