Custodian REIT plc : Custodian REIT acquires pair of DFS retail warehouse assets for GBP9 million (1401435)
July 20 2022 - 2:00AM
UK Regulatory
Custodian REIT plc (CREI) Custodian REIT plc : Custodian REIT
acquires pair of DFS retail warehouse assets for GBP9 million
20-Jul-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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20 July 2022
Custodian REIT plc
("Custodian REIT" or the "Company")
Custodian REIT acquires pair of DFS retail warehouse assets for
GBP9 million
Custodian REIT (LSE: CREI), the UK property investment company
focused on smaller lot-sizes, is pleased to announce two further
property purchases.
The Company has acquired two retail warehouses in Measham,
Leicestershire, and Droitwich, Worcestershire, occupying an
aggregate 40,077 sq ft. The units are both let to DFS Furniture
with a weighted average unexpired term to first break or expiry of
8.0 years and an aggregate passing rent of GBP894,103 per annum,
reflecting a net initial yield1 of 9.43%.
The agreed purchase price of GBP8.9 million was funded from the
Company's existing debt resources, increasing net gearing2 to 23.4%
loan to value, which remains within the Company's target range.
Following this acquisition the Company's diversified portfolio's
weighting to retail warehouses has increased to 24%, with 38%
industrial, 16% office, 11% high street retail and 11% other,
comprising 164 properties located in strong economic areas across
the UK.
Commenting on the acquisition, Richard Shepherd-Cross, Managing
Director of Custodian Capital Limited (the Company's discretionary
investment manager), said:
"These high yielding assets let on long-term leases to a strong
covenant are a great addition to our portfolio. Retail warehouses
continue to demonstrate their relevance and appeal alongside the
continued rise of e-commerce, with one out of three sofas sold in
the UK purchased in-store, while the 'halo' effect of a physical
store supporting local online purchases is particularly strong for
furniture.
"The attractive entry yield will be accretive to dividend
capacity over the medium term. As bricks and mortar retail
undergoes a renaissance, and retail parks continue to outperform,
we anticipate future market rental growth which should mitigate
some of the acknowledged over-rent, support valuations and protect
long term income streams."
1 Passing rent divided by valuation plus assumed purchaser's
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 / Ed Moore / Ian Mattioli MBE Tel: +44 (0)116 240 8740
www.custodiancapital.com
Numis Securities Limited
Nathan Brown / Hugh Jonathan Tel: +44 (0)20 7260 1000
www.numiscorp.com
FTI Consulting
Richard Sunderland / Ellie Sweeney Tel: +44 (0)20 3727 1000
custodianreit@fticonsulting.com
Notes to Editors
Custodian REIT plc is a UK real estate investment trust, listed
on the main market of the London Stock Exchange. Its portfolio
comprises properties predominantly let to institutional grade
tenants on long leases throughout the UK and is principally
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 custodianreit.com and
custodiancapital.com.
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ISIN: GB00BJFLFT45
Category Code: MSCH
TIDM: CREI
LEI Code: 2138001BOD1J5XK1CX76
Sequence No.: 175795
EQS News ID: 1401435
End of Announcement EQS News Service
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