Custodian REIT plc : Purchase of Property

Custodian REIT plc (CREI) Custodian REIT plc : Purchase of Property 04-Jun-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.     4 June 2018     Custodian REIT plc   ("Custodian REIT" or "the Company")   Purchase of Property   Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce a further property purchase.   The Company has acquired a 77,242 sq ft health and fitness centre in Lincoln, prominently located on the A46 within a leading mixed use, out-of-town scheme with businesses in the immediate vicinity including Ibis Hotel, Fayre & Square and Frankie & Benny's.   The unit is let to Total Fitness Health Clubs Limited on a lease expiring on 22 June 2040, subject to a tenant-only break on 22 June 2035.  Current passing rent is £350,000 per annum reflecting a net initial yield1 of 7.64%.   The agreed purchase price of £4.3 million was funded from the Company's existing debt resources, resulting in net gearing2 increasing to 22.4% loan to value.   Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's discretionary investment manager), said:   "We are delighted to have acquired this high specification, purpose-built health and fitness centre in an established and prominent location with an unexpired lease term to first break of 17 years.  The tenant has recently undertaken an extensive internal refurbishment, highlighting its confidence in the continued performance of the location."   1 Portfolio passing rent divided by portfolio valuation plus estimated purchasers' 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 with a portfolio comprising properties predominantly let to institutional grade tenants throughout the UK, principally characterised by properties with individual values of less than £10m at acquisition.   The Company offers investors the opportunity to access a diversified portfolio of UK commercial real estate through a closed-ended fund.  By principally targeting sub £10m lot size regional properties, the Company intends to provide investors with an attractive level of income and the potential for capital growth, becoming the REIT of choice for private and institutional investors seeking high and stable dividends from well-diversified UK real estate.    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
Sequence No.:	5612
EQS News ID:	691753

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End of Announcement	EQS News Service