Custodian REIT PLC Disposal of Property (3397Y)

TIDMCREI

RNS Number : 3397Y

Custodian REIT PLC

05 December 2017

5 December 2017

Custodian REIT plc

("Custodian REIT" or the "Company")

Disposal of Property

Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the disposal of a property from its portfolio.

The Company has sold a 82,081 sq ft multi-let industrial estate in Chepstow for GBP4.63 million, circa GBP0.9 million (25%) ahead of valuation and representing a net initial yield on sale price(1) of 6.75%.

The property was purchased in January 2016 as part of a portfolio and comprises 11 units with a weighted average unexpired lease term to first break or expiry ("WAULT") of circa three years. The Company intends to use the proceeds from the disposal to fund acquisitions better aligned to its investment strategy.

Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's external fund manager), said:

"Pro-active asset management has crystallised 15% rental growth since acquisition. The current significant demand for industrial property due to a lack of available investment stock meant we felt this was the optimum time to sell the asset, allowing us to crystallise a significant valuation gain and increase the Company's WAULT. We intend to re-invest the proceeds in assets with better long-term rental growth prospects."

- Ends -

(1) Passing rent divided by agreed sale price plus estimated purchasers' costs.

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 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 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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