Custodian REIT plc : Disposal of Properties (1236937)
September 30 2021 - 2:00AM
UK Regulatory
Custodian REIT plc (CREI) Custodian REIT plc : Disposal of
Properties 30-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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30 September 2021
Custodian REIT plc
("Custodian REIT" or the "Company")
Disposal of Properties
Custodian REIT (LSE: CREI), the UK property investment company,
is pleased to announce it has completed the disposal of a portfolio
of seven properties ("the Portfolio") for GBP32.6 million.
The Portfolio comprises five industrial sites in Gateshead,
Stockton-on-Tees, Warrington, Stone and Christchurch announced on
30 July 2021 as having unconditionally exchanged to sell, and two
further industrial properties in Aberdeen and Bedford. The
Portfolio has a current passing rent of GBP2.0 million, and a net
initial yield1 of 5.9%. The properties within the Portfolio were
acquired either in the seed portfolio at IPO or within subsequent
portfolio acquisitions.
The agreed sale price of GBP32.6m is GBP5.1m (19%) above the
Portfolio's 31 March 2021 valuation, when terms of the sale were
agreed, and GBP2.9m (10%) above the Portfolio's 30 June 2021
valuation.
Commenting on the disposal, Richard Shepherd-Cross, Managing
Director of Custodian Capital Limited (the Company's external fund
manager), reiterated:
"Investment demand and pricing for industrial assets are both at
record levels, so we believe now is the best time to sell to
capitalise on the current, favourable market dynamics to secure a
significant profit.
"While the short-term prospects for the each of the properties
in the Portfolio remain robust, over the medium term we consider
them as non-core.
"Due to a delayed completion we have already been able to
re-deploy proceeds, whilst sustaining dividend cover, in higher
quality assets with greater prospects for income and capital
growth, better supporting the Board's objective of increasing
dividends in a sustainable way."
1 Aggregate rent, which includes rental guarantees, divided by
agreed disposal price plus estimated purchaser's costs.
- 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 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 is a UK real estate investment trust with a
portfolio comprising properties predominantly let to institutional
grade tenants throughout the UK, principally characterised by
properties with individual values of less than GBP10m at
acquisition.
The Company offers investors the opportunity to access a
diversified portfolio of UK commercial real estate through a
closed-ended fund. By principally targeting sub GBP10m lot size,
regional properties, the Company intends to provide investors with
an attractive level of income and the potential for capital growth,
becoming the REIT of choice for private and institutional investors
seeking high and stable dividends from well-diversified UK real
estate.
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: DIS
TIDM: CREI
LEI Code: 2138001BOD1J5XK1CX76
OAM Categories: 2.2. Inside information
Sequence No.: 123220
EQS News ID: 1236937
End of Announcement EQS News Service
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