Intention to issue equity

RNS Number : 0575R

Custodian REIT PLC

08 September 2014

 

8 September 2014

Custodian REIT plc

("Custodian REIT" or "the Company")

Intention to issue equity

Following the Company's initial placing and admission to the Official List on 26 March 2014 ("IPO"), the Board of the Company today announces that in light of the level of cash deployed since IPO and pipeline of current investment opportunities, it is considering a further share issue under the Placing Programme established in the Company's February 2014 prospectus.  Such issue is expected to be priced at a sufficient premium to Net Asset Value so as to substantially cover the costs associated with the raising and deployment of further funds.  

Qualified Investors (as defined in section 86(7) of the Financial Services and Markets Act 2000 (as amended)) interested in participating are invited to contact Numis Securities Limited using the details below.  A further announcement will be made in due course. 

-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

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 £95 million 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 £55 million through an initial public offering and also arranged a £25 million revolving credit facility ("the Facility").  The Company's investment objective is to provide shareholders with an attractive level of income together with the potential for capital growth.  Since IPO the Company has invested total funds of £48.4 million in acquiring a further 21 UK commercial properties, deploying £12.5 million of cash from the Facility.  Borrowings have increased to 8.7% loan to value. 

The target portfolio is characterised by small lot sizes with individual property values of less than £7.5 million 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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