Custodian REIT plc : Custodian REIT sells North-East Shopping Centre for GBP9.3 million, ahead of 2021 purchase price (1468135)
October 21 2022 - 2:00AM
UK Regulatory
Custodian REIT plc (CREI) Custodian REIT plc : Custodian REIT
sells North-East Shopping Centre for GBP9.3 million, ahead of 2021
purchase price 21-Oct-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.
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21 October 2022
Custodian REIT plc
("Custodian REIT" or the "Company")
Custodian REIT sells North-East Shopping Centre for GBP9.3
million, ahead of 2021 purchase price
Custodian REIT (LSE: CREI), which seeks to deliver a strong
income return by investing in a diversified portfolio of smaller
regional properties across the UK, is pleased to announce the
disposal of its only high street shopping centre for GBP9.3
million1. The Company purchased the 73,367 sq ft shopping centre in
Gosforth as part of its acquisition of DRUM Income Plus REIT plc in
November 2021 and the price reflects a 3.5% premium to the GBP8.975
million apportioned value of the asset at that time.
Since acquisition, the Company has completed a number of asset
management activities which have increased occupancy from 93.6% to
95.7% and grown the rent roll by GBP78k (8.5%), with the asset
producing GBP0.9 million of rental income over the period of
ownership.
The Company intends to invest the sale proceeds in its ongoing
pipeline of building refurbishments, which is expected to enhance
rents and improve the environmental performance of the Company's
portfolio.
Commenting on the disposal, Richard Shepherd-Cross, Managing
Director of Custodian Capital Limited (the Company's external fund
manager), said: "Shopping centres as a sector have not performed
well since the COVID-19 pandemic and do not fit comfortably within
our investment objectives of selecting high quality, well located
regional properties in areas where future rental growth is
underpinned by strong supply/demand fundamentals. The asset
management work completed since acquisition and the accretive terms
of the DRUM Income Plus REIT plc purchase have allowed us to
achieve a profitable sale despite current market uncertainty. This
disposal provides additional capital for our programme of improving
assets we feel will better capture tenant demand over the long term
as well as enhancing their environmental credentials."
1 Adjusted for rental top-ups on vacant units.
- 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
GBP15 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 GBP15 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 www.custodianreit.com and
www.custodiancapital.com.
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ISIN: GB00BJFLFT45
Category Code: MSCH
TIDM: CREI
LEI Code: 2138001BOD1J5XK1CX76
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.: 195679
EQS News ID: 1468135
End of Announcement EQS News Service
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