Custodian REIT plc : Purchase of Property (1292983)

Custodian REIT plc (CREI) Custodian REIT plc : Purchase of Property 03-March-2022 / 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.

-----------------------------------------------------------------------------------------------------------------------

3 March 2022

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 property purchase.

The Company has acquired a 24,134 sq ft industrial unit on Moorgreen Industrial Park, Nottingham, four miles from M1 J27. The unit is occupied by Hickling & Squires with a weighted average unexpired term to first break or expiry of 7.0 years.

The unit has a passing rent of GBP130,000 per annum, reflecting a net initial yield1 of 6.53%.

The agreed purchase price of GBP1.875 million was funded from the Company's existing debt facilities, resulting in net gearing2 increasing to 20.7% 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 modern industrial asset in an excellent location. The purchase was agreed off-market and the net initial yield of 6.53% is above average for a market typified by significant occupier demand leading to rental increases."

1 Passing rent divided by purchase price plus assumed purchaser's costs.

2 Gross borrowings less cash (excluding tenant rental deposits and retentions) divided by last published property portfolio valuation.

-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.

-----------------------------------------------------------------------------------------------------------------------

ISIN:          GB00BJFLFT45 
Category Code: MSCH 
TIDM:          CREI 
LEI Code:      2138001BOD1J5XK1CX76 
Sequence No.:  146481 
EQS News ID:   1292983 
 
End of Announcement  EQS News Service 
=------------------------------------------------------------------------------------

Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1292983&application_name=news

(END) Dow Jones Newswires

March 03, 2022 02:00 ET (07:00 GMT)

Custodian Property Incom... (LSE:CREI)
Historical Stock Chart
From Jun 2024 to Jul 2024