Custodian REIT plc : Purchase of Property (708443)

Dow Jones received a payment from EQS/DGAP to publish this press release.

 
 
 Custodian REIT plc (CREI) 
Custodian REIT plc : Purchase of Property 
 
27-Jul-2018 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
            27 July 2018 
 
      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 16,770 sq ft car dealership on Battlefield 
   Enterprise Park, Shrewsbury's premier car sales location, four miles from 
  the town centre and five miles from the busy A6, linking Shrewsbury to the 
            West Midlands. Nearby occupiers include Audi, Volkswagen, BMW, 
            Mercedes-Benz, Renault, and Ford. 
 
The property is let to TJ Vickers and Sons Limited on a lease expiring on 31 
September 2025 with a current passing rent of GBP120,000 per annum, reflecting 
            a net initial yield1 of 6.75%. 
 
    The agreed purchase price of GBP1.67 million was funded from the Company's 
 existing debt resources, resulting in net gearing2 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 property within Shrewsbury's prime 
motor retail pitch, let on a long-term lease to a strong tenant. The Company 
  has exchanged contracts to acquire an adjacent Audi dealership, which will 
   create economies of scale in managing both properties and assist with any 
            future asset management." 
 
       1 Passing rent divided by valuation plus estimated 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 8740 
Imlach / Ian Mattioli MBE 
                                    www.custodiancapital.com [1] 
 
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 principally 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 [2] and 
            www.custodiancapital.com [1]. 
 
ISIN:           GB00BJFLFT45 
Category Code:  MSCH 
TIDM:           CREI 
LEI Code:       2138001BOD1J5XK1CX76 
OAM Categories: 3.1. Additional regulated information required to be 
                disclosed under the laws of a Member State 
Sequence No.:   5791 
EQS News ID:    708443 
 
End of Announcement EQS News Service 
 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c24dec6d0ea6c746569ddd52de0eca8d&application_id=708443&site_id=vwd_london&application_name=news 
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=44eae66ce326b2005a19503bbab5faed&application_id=708443&site_id=vwd_london&application_name=news

(END) Dow Jones Newswires

July 27, 2018 02:01 ET (06:01 GMT)

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