Custodian REIT PLC Purchase of Property (0754M)
July 26 2017 - 2:00AM
UK Regulatory
TIDMCREI
RNS Number : 0754M
Custodian REIT PLC
26 July 2017
26 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 30,404 sq ft retail warehouse on
Snipe Retail Park, Ashton-under-Lyne, adjacent to junction 23 of
the M60. The unit is occupied by B&M Bargains Limited, with
nearby retailers including B&Q, Halfords, Home Bargains,
Dunelm, Argos and Harveys.
The unit's lease expires on 8 January 2032 with a current
passing rent of GBP421,330 per annum, reflecting a net initial
yield of 6.00%.
The agreed purchase price of GBP6.6 million was funded from the
Company's existing cash resources, resulting in net gearing(2)
increasing to 20.8% 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 the Snipe Retail Park, a well established
Manchester out of town retail park. B&M is a strong nationally
established tenant which dominates its sub-market. The unit has
recently undergone a comprehensive refurbishment with B&M
agreeing to a long-term lease with a 14.5 years unexpired term,
demonstrating its commitment to the unit and location."
(1) Passing rent divided by purchase price 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 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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