Disposal of Properties

RNS Number : 9603B

Custodian REIT PLC

13 January 2015

 

13 January 2015

Custodian REIT plc

("Custodian REIT" or the "Company")

Disposal of Properties

Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the disposal of two properties from its portfolio. 

Abbeyfield Road, Nottingham

The Company has sold a 36,924 sq ft hybrid office building on Abbeyfield Road, Nottingham for £1.50m, significantly ahead of the 30 September 2014 valuation of £1.24m.  The lease on the property is due to expire on 15 October 2015 and the tenant has confirmed its intention not to renew the lease.

Lace Market, Nottingham

The Company has also disposed of a three storey, 3,249 sq ft office building located in the Lace Market area of Nottingham city centre for £0.30m, in line with its 30 September 2014 valuation.  The property is currently vacant.

The cash received from the disposal of these properties will be used to fund further acquisitions, which better fit the investment strategy of the Company.  Both properties were part of the initial portfolio acquired on the Company's admission to the main market of the London Stock Exchange.

Commenting on the disposals, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's external fund manager), said:

"The Abbeyfield Road property was approaching the end of the current lease and our long term view is that the building is not suitable for modern office demands.  In anticipation of an extended period of void without income, we have accepted an offer for the property significantly ahead of open market value.

"The Lace Market property was vacant and subscale for the Company's portfolio.  A disposal to an owner-occupier has therefore been agreed at valuation." 

- Ends -

For further information, please contact:

Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach / Ian Mattioli	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 ("REIT") listed on the London Stock Exchange.  The Company launched on 26 March 2014, acquiring a portfolio of £95m of UK commercial property.  This was sourced from an existing portfolio of 48 properties held by clients of Mattioli Woods plc in a syndicated structure.  The diverse portfolio consisted of properties let to institutional grade tenants on long leases throughout the UK. 

The Company raised gross proceeds of £55m through an initial public offering and raised a further £25m via a subsequent placing.  It invests in a diversified portfolio of UK commercial properties to achieve its investment objective of providing shareholders with an attractive level of income together with the potential for capital growth through a closed-ended fund. 

The target portfolio is characterised by small lot sizes with individual property values of less than £7.5m at acquisition. 

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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