Custodian REIT plc : Disposal of Property (851373)
August 05 2019 - 2:00AM
UK Regulatory
Custodian REIT plc (CREI)
Custodian REIT plc : Disposal of Property
05-Aug-2019 / 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.
5 August 2019
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 119,600 sq ft industrial warehouse unit in
Wolverhampton for GBP6.6 million, in line with the 30 June 2019 valuation,
representing a net initial yield1 of 7.27%.
The property was purchased in June 2016 for GBP4.5 million as part of a
three-property portfolio. Following the disposal, net gearing2 has decreased
to 21.3%. The Company intends to use the proceeds from the disposal to fund
acquisitions better aligned to its stated investment strategy.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of
Custodian Capital Limited (the Company's external fund manager ), said:
"Our ongoing commitment to portfolio management has led to a 42% rental
increase and a significant valuation increase since acquisition. While the
property has delivered consistent cash flow, we felt that with four years
remaining on the lease and current market sentiment to the industrial
sector, the time was right to dispose of the asset and crystallise the 47%
valuation gain since acquisition."
1 Passing rent divided by sale price 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 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: MSCU
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.: 15603
EQS News ID: 851373
End of Announcement EQS News Service
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c24dec6d0ea6c746569ddd52de0eca8d&application_id=851373&site_id=vwd&application_name=news
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=44eae66ce326b2005a19503bbab5faed&application_id=851373&site_id=vwd&application_name=news
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