Disposal of Property

RNS Number : 3397Y

Custodian REIT PLC

05 December 2017

 

 

5 December 2017

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 82,081 sq ft multi-let industrial estate in Chepstow for £4.63 million, circa £0.9 million (25%) ahead of valuation and representing a net initial yield on sale price¹ of 6.75%. 

The property was purchased in January 2016 as part of a portfolio and comprises 11 units with a weighted average unexpired lease term to first break or expiry ("WAULT") of circa three years.  The Company intends to use the proceeds from the disposal to fund acquisitions better aligned to its investment strategy. 

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

"Pro-active asset management has crystallised 15% rental growth since acquisition.  The current significant demand for industrial property due to a lack of available investment stock meant we felt this was the optimum time to sell the asset, allowing us to crystallise a significant valuation gain and increase the Company's WAULT.  We intend to re-invest the proceeds in assets with better long-term rental growth prospects."

- Ends -

¹ Passing rent divided by agreed sale price plus estimated purchasers' costs.

For further information, please contact:

Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach / Ian Mattioli MBE	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 properties 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 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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