Custodian REIT PLC Purchase of Property (7318S)
October 05 2017 - 2:01AM
UK Regulatory
TIDMCREI
RNS Number : 7318S
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 the 51,956 sq ft Wellington Road Retail
Park in Burton upon Trent, adjacent to the busy A38. The site
comprises three units let to Wickes, The Range and HSS Hire and has
208 parking spaces. Nearby retailers include B&Q and Burger
King.
The units' leases expire on 28 September 2028, 30 October 2031
and 29 September 2018 respectively, with a total passing rent of
GBP580,681 per annum reflecting a net initial yield(1) of
6.45%.
The agreed purchase price of GBP8.45 million was funded from the
Company's existing debt facilities, resulting in net gearing(2)
increasing to 20.2% 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
retail park within Burton's main out of town retail pitch. 35% of
the property's rent is subject to fixed uplifts and its weighted
average unexpired lease term of over 11 years adds secure income to
the portfolio. The HSS unit, which represents 7% of the asset's
aggregate rent, is unoccupied and provides an excellent opportunity
to drive additional value by developing that part of the site."
(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
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
ACQUGGGPUUPMGAC
(END) Dow Jones Newswires
October 05, 2017 02:01 ET (06:01 GMT)
Custodian Property Incom... (LSE:CREI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Custodian Property Incom... (LSE:CREI)
Historical Stock Chart
From Jul 2023 to Jul 2024