Purchase of Property

RNS Number : 9597H

Custodian REIT PLC

20 March 2015

 

20 March 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 £96.6 million. 

The Company has acquired two industrial units in Leeds occupying 41,077 sq ft, with excellent links to the M1 and M621.

The units are let to Nationwide Crash Repair Centres Limited and Sovereign Air Movement Limited on leases expiring on 24 December 2020 and 15 April 2021 respectively, with total passing rent of £187,500 per annum, reflecting a net initial yield of 7.51%.

The agreed purchase price of £2.36 million was funded from the Company's cash resources, with net borrowings following the acquisition of 7.1% loan to value.

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

"In this increasingly competitive market, we are very pleased to have made another strong addition to the industrial sector of the portfolio.  The property is centrally located adjacent to the Leeds ring road.  There is a severe shortage of quality industrial units in the city which will result in minimal re-letting voids and future rental growth." 

-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

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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