Purchase of Property

RNS Number : 2125K

Custodian REIT PLC

23 June 2014

 



23 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 further property purchase following its initial placing and admission to the Official List on 26 March 2014. 

The Company has acquired a parcel distribution depot on Bermuda Park, Nuneaton.  The 37,000 sq ft specialist parcel depot benefits from 38 cross-docked loading doors on a site of 3.26 acres, which represents a very low site cover.  Other occupiers on the 200 acre Bermuda Park include Norbert Dentressangle, Bestway, Booker, MAN Central, Kelvatek and Screwfix. 

The property is let to DX Network Services Limited ("DX") on a 15 year lease, expiring on 31 August 2016, at a passing rent of £242,000 per annum, reflecting a net initial yield of 7.75%.  The purchase consideration of £2.951 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:

"We understand the UK has one of the largest online retail markets in the world.  A network of well located, appropriately designed distribution depots is an essential part of the success of online retailing.  The DX unit on Bermuda Park, Nuneaton comprises a bespoke parcel depot, located in the heart of one of the principal distribution locations in the UK.  We believe tenant demand for this specialist building will drive long-term performance and continue to meet the income requirements of the fund." 

-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

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. 

 

END

 

 

ACQPGUWUQUPCGAP