Custodian REIT PLC Purchase of Property (7312S)

TIDMCREI

RNS Number : 7312S

Custodian REIT PLC

05 October 2017

5 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 high street retail unit in Cardiff let to Sportswift Limited (trading as Card Factory) and Specsavers Optical Superstores Limited. The property comprises two well configured retail units with upper floor sales and ancillary accommodation, located in the prime retail pitch of Queen Street. Nearby shops include Next, Zara, Marks & Spencer, Boots and Top Shop.

The tenants' leases expire on 26 March 2020 and 23 June 2032 respectively with a total passing rent of GBP410,100 per annum, reflecting a net initial yield(1) of 7.46%.

The agreed purchase price of GBP5.16m was funded from the Company's existing debt facilities, resulting in net gearing(2) increasing to 18.7% 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 located within the prime retail pitch of Cardiff city centre. Its weighted average unexpired lease term of over nine years adds secure income to the portfolio and the unoccupied upper floors provide an opportunity to drive additional value."

(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        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 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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