Issue of Equity

RNS Number : 8114E

Custodian REIT PLC

13 February 2015

 

13 February 2015

Custodian REIT plc

("Custodian REIT" or "the Company")

Issue of equity

Following the announcement of a proposed issue of equity on 23 January 2015, the Board is pleased to announce the placing has closed, raising £22.36 million (before costs and expenses) through the issue of 21,500,000 new ordinary shares of 1p each in the capital of the Company ("the New Shares") under the Placing Programme established in the Company's February 2014 prospectus ("the Issue").

The placing was oversubscribed and the Board has decided in light of the strong pipeline of investment opportunities that it is in shareholders' interests to increase the size of the Issue beyond the £20 million targeted.

The Board and the Company's external fund manager, Custodian Capital Limited ("the Fund Manager") confirm that the Issue at this higher level remains consistent with the Company's published objectives, including its dividend targets of 5.25 pence per share in the year ending 31 March 2015 and 6.25 pence per share in respect of each financial year thereafter.

The New Shares will be issued at 104.00 pence per share, which the Board and the Fund Manager consider represents a premium of 5% to the net asset value per share at 31 December 2014, having deducted the proposed third quarter dividend of 1.25 pence per share, which is payable to shareholders on the register at the close of business on 6 February 2015.

Applications will be made for the New Shares to be admitted to the premium segment of the Official List of the UK Listing Authority and to trading on the London Stock Exchange plc's main market for listed securities.  Admission is expected to become effective, and dealings in the New Shares to commence, at 8 a.m. on 17 February 2015.

- 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

Camarco
Ed Gascoigne-Pees	Tel: [phone]
	www.camarco.co.uk

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 raised a further £25 million via a subsequent placing in October 2014.  It invests in a diversified portfolio of UK commercial properties to achieve its investment objective of providing shareholders with an attractive level of income together with the potential for capital growth through a closed-ended fund.  Since IPO the Company has invested total funds of £91.5 million in acquiring a further 34 UK commercial properties. 

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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