Custodian REIT plc : Purchase of Property (1327723)
April 14 2022 - 2:00AM
UK Regulatory
Custodian REIT plc (CREI) 14-Apr-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.
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14 April 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 86,922 sq ft industrial facility in
Grangemouth, adjacent to the M9. The unit is let Thornbridge
Sawmills for a further 18 years.
The unit has a passing rent of GBP388,261 per annum, with a
reversion in September 2023, linked to RPI, which is expected to
reflect a net reversionary yield1 of 5.5%.
The agreed purchase price of GBP7.49 million was funded from the
Company's existing debt facilities, resulting in net gearing2
increasing to 20.9% 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 property which benefits
from excellent links to both Glasgow and Edinburgh but importantly
for the tenant, which imports timber, is in close proximity to
Scotland's largest container port. The relatively low risk, long
term lease to a strong tenant is further enhanced by rent reviews
linked to RPI, capped and collared at a maximum of 3% and minimum
1% per annum, providing a degree of inflation protection. The first
rent review is due in September 2023 and five-yearly
thereafter."
1 Reversionary rent divided by purchase price plus assumed
purchasers' 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.
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ISIN: GB00BJFLFT45
Category Code: MSCM
TIDM: CREI
LEI Code: 2138001BOD1J5XK1CX76
Sequence No.: 155540
EQS News ID: 1327723
End of Announcement EQS News Service
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