Purchase of Property

RNS Number : 7564Q

Custodian REIT PLC

22 June 2015

 



22 June 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 the acquisition of a mixed use portfolio of 10 properties. 

The Company has acquired a national portfolio of six high street shops with an average lot size of £1.21 million and four industrial units with an average lot size of £1.83 million.  Locations include Chester, St Albans, Bristol, Farnborough and Kettering and tenants within the portfolio include BSS Plc, EE Limited, Kuoni Travel Limited, Shoe Zone Limited, Wilko Retail Limited and Waterstones Booksellers Limited.  

The agreed purchase price of £14.6 million was funded from the Company's existing credit facilities, with net borrowings following the acquisition increasing to 16.7% loan to value.

The portfolio's current passing rent of £1.12 million reflects a net initial yield of 7.27% with an average weighted unexpired lease term of 6.2 years.  There are ongoing negotiations with two tenants to re-gear short, unexpired lease terms, with the potential to extend leases with existing tenants.

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

"Custodian REIT's investment strategy of targeting small lot size property makes this portfolio an excellent fit.  Despite widespread price inflation in the market, the Company's strategy is proving resilient in delivering a high income return from a well-diversified portfolio, in locations with low vacancy rates that have future rental growth potential."

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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, which listed on the main market of the London Stock Exchange on 26 March 2014.  Its portfolio comprises properties predominantly let to institutional grade tenants on long leases throughout the UK and is characterised by small lot sizes, with individual property values of less than £7.5 million at acquisition. 

The Company offers investors the opportunity to access a diversified portfolio of UK commercial real estate through a closed-ended fund.  By targeting smaller lot size properties, the Company intends to provide investors with an attractive level of income with the potential for capital growth. 

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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