New Term Loan

RNS Number : 4039W

Custodian REIT PLC

18 August 2015

 

18 August 2015

Custodian REIT plc

("Custodian REIT" or "the Company")

New Term Loan and Cancellation of Share Premium Account

Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce a new term loan facility and the cancellation of its share premium account. 

Term loan

On 14 August 2015, the Company and Scottish Widows plc, with Lloyds Bank plc acting as agent, entered into an agreement for Scottish Widows plc to provide the Company with a new term loan facility of £20 million, repayable on 14 August 2025 ("the New Loan").  Under the terms of the agreement, the Company will pay fixed interest of 3.935% per annum on the balance.  

On drawdown of the New Loan, the Company had uncommitted facilities of £24.4 million available to deploy, with £9.8 million of properties currently under offer and in solicitors' hands ("the Pipeline Properties").  Net borrowings are 15.5% loan to value, which will rise to 20.9% loan to value on completion of the purchase of the Pipeline Properties, in line with the Company's objective to increase gearing towards a ratio of 25% loan to value.

Commenting on the new term loan facility, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's discretionary investment manager), said:

"Securing long-term, fixed rate debt at a level significantly below the UK historical average demonstrates our commitment to achieving the target gearing ratio and mitigating risk." 

Cancellation of share premium account

On 14 August 2015, registration was completed of the Chancery Division of the High Court of Justice's approval of the cancellation of the Company's share premium account, standing at £181,485,649 as of 22 July 2015.  Further details, including the rationale for the cancellation, are set out in the Notice of Annual General Meeting available on the Company's website at:

www.custodianreit.com/perch/resources/custodian-reit-notice-of-agm-july-2015.pdf

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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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