Disposal of Property

RNS Number : 5619F

Custodian REIT PLC

29 July 2016

 

29 July 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 22,317 sq ft hotel on Castlegate Business and Leisure Park, Dudley for £4.45 million, £0.34 million ahead of the 31 March 2016 valuation.  The property is let to Premier Inn Hotels Limited on a lease expiring in 2038.

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 long term 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 an 8.3% valuation gain, capitalising on market demand for long-term secure income and securing a price reflecting a net initial yield of 5.0%.  Contrary to many open-ended property funds, a number of which have halted redemptions to allow them time to sell properties to meet their redemption obligations, this sale is part of our normal asset management activity.  We expect to redeploy the sale proceeds on our committed pipeline, providing better long-term growth potential and a higher running yield to enhance shareholder returns".

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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 £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 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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