Custodian REIT plc : Custodian REIT sells North-East Shopping Centre for GBP9.3 million, ahead of 2021 purchase price (1468135)

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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