Custodian REIT plc : Purchase of Land with Pre-...

Custodian REIT plc (CREI) Custodian REIT plc : Purchase of Land with Pre-let Development 02-March-2018 / 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.     2 March 2018     Custodian REIT plc   ("Custodian REIT" or "the Company")   Purchase of Land with Pre-let Development   Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the completion of a forward funding agreement for a pre-let development, together with the purchase of the development land.    The Company has acquired 0.4 acres of land in Maypole, Birmingham, adjacent to the busy A435 Alcester Road, one of the main arterial routes into Birmingham city centre.   The development will comprise an 1,800 sq ft drive-through coffee shop with 16 parking spaces and construction is being phased over an expected six month build period.    The unit, to be developed by Deeley Properties Limited, has been pre-let to Starbucks Coffee UK Limited on a 15 year lease, without break, with five yearly upward only market rent reviews.  On completion of the development for a total consideration of £1.75 million, the total passing rent will be £120,000 per annum reflecting a net initial yield[1] of 6.43%.   The land purchase price of £1.0 million was funded from the Company's existing cash facilities, resulting in net gearing2 increasing to 21.7% loan to value.   Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's discretionary investment manager), said:   "The growth of drive-through stores is being driven by the likes of Costa, Starbucks and Greggs and is proving popular with retailers and customers, which is leading to rental growth in the sector.  The location of this property on an arterial access route for Birmingham city centre allows easy accessibility for traffic both entering and leaving the City, enhancing the site's offering."   1 Passing rent divided by valuation plus estimated 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 / Nathan Imlach / Ian Mattioli MBE Tel: [phone]   www.custodiancapital.com   Numis Securities Limited   Nathan Brown / Hugh Jonathan Tel: [phone]   www.numiscorp.com   Camarco   Ed Gascoigne-Pees Tel: [phone]   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 properties with individual values of less than £10 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 £10 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. Â

ISIN:	GB00BJFLFT45
Category Code:	MSCH
TIDM:	CREI
Sequence No.:	5255

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End of Announcement	EQS News Service

659657  02-March-2018