Purchase of Property

RNS Number : 0259G

Custodian REIT PLC

27 February 2015

 

27 February 2015

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 on 26 March 2014 to £94.0 million. 

The Company has acquired a 17,384 sq ft, four storey office building in Glasgow city centre, with excellent transport links to junction 19 of the M8, Central and Queen Street train stations and Buchanan Street underground station. 

The property is let to four tenants with lease expiries between 30 March 2018 and 29 September 2022, with total rental income of £222,008 per annum, reflecting a net initial yield of 8.51%.

The purchase consideration of £2.465 million was funded from the Company's cash resources following a placing of shares in February 2015 which raised £22.6 million (before costs and expenses). The Company's net borrowings following the acquisition are 6.0% loan to value.

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

"We are delighted to have secured this recently refurbished, fully-let office building in Glasgow city centre, which at a purchase price of £142 per sq ft represents excellent value relative to current and historical levels.  The property benefits from open-plan, 3,500-3,800 sq ft floor plates that are a good fit with current occupational demand and we believe the property should benefit from rental growth over the medium term."

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For further information:

Further information regarding the Company can be found at the Company's website www.custodianreit.com or 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

Camarco
Ed Gascoigne-Pees	Tel: [phone]
	www.camarco.co.uk

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 raised gross proceeds of £55 million through an initial public offering and has raised a further £47.6 million via two subsequent placings.  It invests 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 through a closed-ended fund. 

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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