Disposal of Property

RNS Number : 2677Y

Custodian REIT PLC

16 May 2016

 

16 May 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 purpose-built student residential building in Lenton, Nottingham for £1.2 million, ahead of cost and 31 March 2016 valuation.  The property was fully let for the next academic year prior to marketing.

The property was part of the initial portfolio acquired on the Company's admission to the London Stock Exchange in 2014.  Following the disposal and placing of new shares announced on 13 May 2016, net borrowings have decreased to 12.2% loan to value.  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:

"Due to the size and nature of use, this asset was identified as being non-core within our ongoing strategy.  Over the last two years we have secured rental growth and now a profit on exit.  We believe the proceeds can be reinvested to produce an enhanced income return which is a stronger fit with the balance of the portfolio and better supports dividends and future dividend growth."

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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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