Custodian REIT plc : Custodian REIT acquires high-yielding long lease industrial asset (1405493)
July 26 2022 - 2:00AM
UK Regulatory
Custodian REIT plc (CREI) Custodian REIT plc : Custodian REIT
acquires high-yielding long lease industrial asset 26-Jul-2022 /
07:00 GMT/BST Dissemination of a Regulatory Announcement that
contains inside information in accordance with the Market Abuse
Regulation (MAR), transmitted by EQS Group. The issuer is solely
responsible for the content of this announcement.
-----------------------------------------------------------------------------------------------------------------------
26 July 2022
Custodian REIT plc
("Custodian REIT" or the "Company")
Custodian REIT acquires high-yielding long lease industrial
asset
Custodian REIT (LSE: CREI), the UK property investment company
focused on smaller lot-sizes, is pleased to announce that it has
acquired a 47,882 sq ft industrial facility which is fully let to
Container Components Limited with 20 years remaining on the lease
for GBP3.5 million. The property produces an index linked passing
rent of GBP227,440 per annum, reflecting a net initial yield1 of
6.10%, and is located two miles from junction 29 of the M1 near
Chesterfield, Derbyshire.
The acquisition was funded from the Company's existing debt
facilities, increasing net gearing2 to 23.8% loan to value, which
remains within the Company's target range.
This acquisition increases the industrial weighting within the
Company's highly diversified portfolio of 165 properties to 38%,
with the balance comprising 24% retail warehouse, 16% office, 11%
high street retail and 11% other, all of which are 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: "This well located, modern industrial
asset has been acquired at an entry yield of 6.10% which is
significantly above the market average for industrial assets. The
property also benefits from five-yearly index linked rental
increases which provide long-term inflation-adjusted income. The
acquisition demonstrates our continued ability to source high
quality assets on behalf of our shareholders which offer enhanced
but secure income returns by focussing on smaller sized properties
where there is reduced competition."
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
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 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.: 177030
EQS News ID: 1405493
End of Announcement EQS News Service
=------------------------------------------------------------------------------------
Image link:
https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1405493&application_name=news
(END) Dow Jones Newswires
July 26, 2022 02:00 ET (06:00 GMT)
Custodian Property Incom... (LSE:CREI)
Historical Stock Chart
From Sep 2024 to Oct 2024
Custodian Property Incom... (LSE:CREI)
Historical Stock Chart
From Oct 2023 to Oct 2024