Custodian REIT plc : Purchase of Property (1230988)
September 03 2021 - 2:00AM
UK Regulatory
Custodian REIT plc (CREI) Custodian REIT plc : Purchase of
Property 03-Sep-2021 / 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.
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3 September 2021
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 20,012 sq ft office building on
Fountain Street, Manchester which is a short walk from Piccadilly
Gardens and Oxford Road station. Other local occupiers include
Savills, Sixteen Real Estate, Chartered Wealth Management and Royal
& Sun Alliance Insurance.
The property comprises basement parking and six floors let to
Leyton UK, Meridian Healthcomms, Venditan and Fourthline with a
weighted average unexpired lease term to first break or expiry
("WAULT") of 1.2 years and an aggregate rent of GBP406,704 per
annum, reflecting a net initial yield[1] of 6.10%.
The agreed purchase price of GBP6.25 million was funded from the
Company's existing debt facilities, resulting in net gearing[2]
increasing to 25.2% 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 high quality office
building in a proven central Manchester location, which continues
the pre-emptive deployment of proceeds from the sale of a portfolio
of industrial properties due to complete later this month. The
short WAULT provides potential asset management opportunities to
enhance value and increase passing rent."
1 Aggregate rent, which includes rental guarantees, divided by
valuation plus estimated purchaser's costs.
2 Gross borrowings less cash (excluding tenant rental deposits
and retentions) divided by last published property portfolio
value.
-Ends-
For further information, please contact:
Custodian Capital Limited
Richard Shepherd-Cross / Ed Moore / Ian Mattioli MBE Tel: +44 (0)116 240 8740
www.custodiancapital.com
Numis Securities Limited
Hugh Jonathan/Nathan Brown 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 small lot sizes, 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 smaller lot size 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.
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ISIN: GB00BJFLFT45
Category Code: ACQ
TIDM: CREI
LEI Code: 2138001BOD1J5XK1CX76
Sequence No.: 121372
EQS News ID: 1230988
End of Announcement EQS News Service
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