Custodian REIT plc : Purchase of Property (721813)
September 10 2018 - 2:01AM
UK Regulatory
Dow Jones received a payment from EQS/DGAP to publish this press
release.
Custodian REIT plc (CREI)
Custodian REIT plc : Purchase of Property
10-Sep-2018 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
10 September 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 72,582 sq ft industrial unit on Hilton Business
Park, Derby, located one mile from the A50 which connects the M1 and M6.
Nearby occupiers include Amco Logistics and NR Evans Distribution.
The unit is let to Daher Aerospace Limited on a lease expiring on 14
September 2031 with a current passing rent of GBP400,060 per annum reflecting
a net initial yield[1] of 6.72%.
The agreed purchase price of GBP5.585 million was funded from the Company's
existing debt facilities, resulting in net gearing[2] increasing to 23.3%
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 acquired this modern unit located in the
developing logistics and distribution corridor of the A50. There is
significant demand in the Midlands for high quality industrial units with
good communication links. Given the affordable level of passing rent and the
increasing cost of development limiting the supply of competing space, we
expect this demand to lead to rental growth at the September 2021 rent
review."
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].
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ISIN: GB00BJFLFT45
Category Code: MSCH
TIDM: CREI
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 5988
EQS News ID: 721813
End of Announcement EQS News Service
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September 10, 2018 02:01 ET (06:01 GMT)
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