Disposal of Property

RNS Number : 2144N

Custodian REIT PLC

28 January 2016

 

28 January 2016

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 7,333 sq ft purpose-built office on Madison Place Business Park, Manchester for £1.35 million, £0.15 million ahead of the 30 September 2015 valuation.  Prior to marketing, the lease term with Central Manchester University Hospitals NHS Foundation Trust was extended from four years to 10 years.

The property was part of the initial portfolio acquired on the Company's admission to the London Stock Exchange in 2014.  The Company intends to use the proceeds from the disposal to fund acquisitions better aligned to its stated investment strategy. 

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

"We are delighted to have crystallised a 12.5% valuation gain, following us pro-actively re-gearing the lease of this strong tenant.  The property was slightly sub-scale and we do not anticipate this location experiencing significant rental growth in the medium term.  This is an example of how pro-active asset management can enhance NAV and we have several similar initiatives in progress with the joint aim of extending the average unexpired lease term of the portfolio and growing NAV."

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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, 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 characterised by small lot sizes, with individual property values of less than £7.5 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 smaller lot size 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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