Purchase of Property

RNS Number : 6877J

Custodian REIT PLC

16 June 2014

 



16 June 2014

Custodian REIT plc

("Custodian REIT" or the "Company")

Purchase of Property

Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the completion of a third property purchase following its initial placing and admission to the Official List on 26 March 2014. 

The Company has acquired a modern distribution warehouse on the south side of Biggleswade, adjacent to the A1 on the busy Stratton Business Park.  The property comprises a 49,919 sq ft distribution warehouse, with 10 metre eaves, on a 2.87 acre site.  Other occupiers on the 48 acre business park include Bibby Distribution, iCandy, Jordans, Kramp and Liebherr. 

The property is let to Turpin Distribution Services Limited ("Turpin").  Turpin has been in occupation since the building was constructed in 2004 and has just agreed a new five year lease expiring on 24 March 2019.  The property is let at a passing rent of £300,000 per annum, reflecting a net initial yield of 7.5%.  The purchase consideration of £3.785 million was funded from the Company's own cash resources. 

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

"This modern distribution warehouse, in a strategic location, offers a high-specification warehouse to its tenant and in return should generate stable, long-term income for Custodian REIT and support the target return." 

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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

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 also raised gross proceeds of £55 million through an initial public offering and will invest 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. 

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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