Purchase of Property

RNS Number : 5640P

Custodian REIT PLC

20 August 2014

 

20 August 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 £43.8 million. 

The Company has acquired the freehold interest of a retail warehouse at 1 Grafton Gate East, Milton Keynes. The property is let to Staples UK Limited and Staples International Inc. on a lease expiring 28 September 2020. Staples is one of the UK's leading stationary and office suppliers with over 110 stores throughout the UK. The current passing rent is £418,886 per annum, reflecting a net initial yield of 6.95%.  The purchase consideration of £5.725 million was funded from the Company's existing credit facilities, in line with the stated investment strategy of a target gearing ratio of 25% loan to value.

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

"We understand this prominent retail warehouse in central Milton Keynes is amongst Staples' best performing stores in the UK. It represents good value against historical retail warehouse yields and adds another high quality asset to the fund."

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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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