Custodian REIT PLC Purchase of Property (4738S)
October 03 2017 - 2:00AM
UK Regulatory
TIDMCREI
RNS Number : 4738S
Custodian REIT PLC
03 October 2017
3 October 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 43,370 sq ft distribution unit on
Houston Industrial Estate, Livingston, one of the most established
industrial centres in Scotland at junction three of the M8, 15
miles from Edinburgh and 30 miles from Glasgow. Nearby occupiers
include Booker, Iceland and Hays.
The unit is let to A Share & Sons Limited (trading as SCS)
on a lease expiring on 2 October 2022. The agreed purchase price
reflects a net initial yield(1) of 7.5%, subject to agreement of an
ongoing rent review.
The agreed purchase price of GBP2.59 million was funded from the
Company's existing debt facilities, resulting in net gearing(2)
increasing to 19.4% 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 unit located on one of
Scotland's prime distribution parks and let to a market leading
retailer. The unit is SCS's only distribution location in Scotland
and the tenant is committed to the site."
(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
Hugh Jonathan/Nathan Brown 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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