Purchase of Property

RNS Number : 6748M

Custodian REIT PLC

18 July 2014

 



18 July 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 a further property purchase, bringing the total funds invested following its initial placing and admission to the Official List ("IPO") on 26 March 2014 to £36.3 million. 

The Company has acquired the freehold interest of a public house on Frogmore Lane in High Wycombe.  The property is let to the Stonegate Pub Company Limited trading as Yates's Wine Lodge, on a 999 year lease subject to a tenant's only break option in November 2026, giving an unexpired term of 12.3 years.  The current passing rent is £115,000 per annum, reflecting a net initial yield of 6.69%.  The purchase consideration of £1.625 million was funded from the Company's existing credit facilities, in line with the stated investment strategy of increasing gearing towards a target ratio of 25% loan to value. 

The Stonegate Pub Company Limited is the UK's largest privately held managed pub operator, trading from over 620 locations under brands including Yates's, The Slug and Lettuce, The Living Room and Scream. 

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

"In addition to the benefits of a long income stream from a very good covenant, we feel this purchase represents excellent value for money when considering the capital value of the building in this location". 

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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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