Issue of Equity

RNS Number : 3519T

Custodian REIT PLC

03 October 2014

 



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, TO US PERSONS OR IN OR INTO THE UNITED STATES, OR INTO OR FROM ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN THE UNITED KINGDOM), CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR JAPAN.

This announcement does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any shares in Custodian REIT plc or securities in any other entity, in any jurisdiction, including the United States, nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or investment decision whatsoever, in any jurisdiction.  This announcement does not constitute a recommendation regarding any securities.

Neither the content of the Company's website (or any other website) nor any website accessible by hyperlinks the Company's website (or any other website) is incorporated in, or forms part of, this announcement. 

3 October 2014

CUSTODIAN REIT PLC

("Custodian REIT" or "the Company")

Issue of equity

Following the announcement of a proposed issue of equity on 23^rd September, the Board of the Company is pleased to announce that the placing has closed, raising £25 million (before costs and expenses) through the issue of 23,866,349 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 significantly 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 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 104.75 pence per share, which the Board and the Fund Manager consider represents a premium of circa 5% to the estimated net asset value per share as at 30 September 2014.

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 8 October 2014.

Ian Mattioli, a Non-Executive Director, his wife and personal pension fund have subscribed for a total of 250,000 New Shares.

-Ends-

For further information, please contact:

Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach / Ian Mattioli	Tel: [phone]
	www.custodiancapital.com

Numis Securities Limited	Tel: [phone]
Sales: Katherine Miller / Chris Gook
Corporate: Hugh Jonathan / Nathan Brown	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 ("IPO") 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. 

Custodian Capital Limited is the discretionary investment manager of the Company.

For more information visit www.custodianreit.com and www.custodiancapital.com. 

Important Information

This announcement has been prepared by, and is the sole responsibility of, Custodian REIT plc.

Numis Securities Limited is acting only for Custodian REIT plc in connection with the matters described in this announcement and is not acting for or advising any other person, or treating any other person as its client, in relation thereto and will not be responsible for providing the regulatory protection afforded to clients of Numis Securities Limited or advice to any other person in relation to the matters contained herein.

The Company is not and will not be registered under the US Investment Company Act of 1940, as amended.  The New Shares have not been, nor will they be, registered under the US Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States or under the applicable securities laws of Australia, Canada, Japan, the Republic of Ireland or the Republic of South Africa or any other jurisdiction that is a member state of the European Economic Area (other than the United Kingdom).  Subject to certain exceptions, the New Shares may not be offered or sold in the United States, Australia, Canada, Japan, the Republic of Ireland or the Republic of South Africa or any other jurisdiction that is a member state of the European Economic Area (other than the United Kingdom) or to or for the account or benefit of any national, resident or citizen of any member state of the European Economic Area (other than the United Kingdom), Australia, Canada, Japan, the Republic of Ireland or the Republic of South Africa or any person located in the United States.  Placings under the Issue and the distribution of this announcement in other jurisdictions may be restricted by law and the persons into whose possession this announcement comes should inform themselves about, and observe, any such restrictions. 

This announcement includes "forward-looking statements".  All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company's business strategy and plans are forward-looking statements.

Forward-looking statements are subject to risks and uncertainties and accordingly the Company's actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements.

These forward-looking statements speak only as at the date of this announcement.  The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Financial Services Act 2012, the Listing Rules or Prospectus Rules of the Financial Conduct Authority or other applicable laws, regulations or rules.

This announcement has been approved for the purposes of s.21 of the Financial Services and Markets Act 2000 by Custodian Capital Limited.

 

END

 

 

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