Custodian REIT plc (CREI)
8 June 2022
Custodian REIT plc
(“Custodian REIT” or the “Company”)
Disposal of Property
Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the disposal of a property from its portfolio.
The Company has sold a 24,178 sq ft car showroom in Derby let to Volkswagen for £5.6 million, £1.2 million (26%) ahead of the 31 March 2022 valuation, representing a net initial yield1 of 5.7%. Following the disposal, net gearing2 has decreased to 20.5%.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s external fund manager), said:
“This asset has provided a healthy level of income over our five years of ownership and is being sold to a ‘special purchaser’ at a significant profit. We have a strong pipeline of assets on which to redeploy the proceeds of this sale with better rental growth and asset management prospects.”
1 Passing rent divided by sale price plus estimated purchasers’ costs. 2 Gross borrowings less cash (excluding rent deposits and retentions) divided by last published property portfolio valuation.
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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.
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ISIN: | GB00BJFLFT45 |
Category Code: | MSCH |
TIDM: | CREI |
LEI Code: | 2138001BOD1J5XK1CX76 |
Sequence No.: | 166767 |
EQS News ID: | 1370367 |
End of Announcement | EQS News Service |
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