Purchase of Property

RNS Number : 8951G

Custodian REIT PLC

13 May 2014

 



13 May 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 its maiden property purchase following its initial placing and admission to the Official List on 26 March 2014.  The initial placing allotted shares to acquire a portfolio of £95 million of UK commercial property and raised the maximum gross proceeds of £55 million.  

The Company has acquired a modern, 25,223 sq ft industrial/distribution unit on Willowbridge Way, Castleford.  Willowbridge Way is a modern industrial estate, ½ mile north of Junction 31 of the M62 motorway, in an established distribution location. 

The property is let to Bunzl UK Limited with an unexpired lease term of 9 years and 5 months.  The lease is subject to a tenant's option to determine on 4 August 2018 and provides for five yearly, upwards only, rent reviews.  The property is let at a passing rent of £125,000 per annum, reflecting a net initial yield of 7.5%.  The purchase consideration of £1.575 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 is the first of a pipeline of new acquisitions, which is in line with the Company's stated investment policy and further strengthens the industrial/distribution portfolio while supporting its target return."

-Ends-

For further information, please contact:

Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach	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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