Purchase of Property

RNS Number : 0832J

Custodian REIT PLC

01 April 2015

 

31 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 £105.2 million. 

The Company has acquired a 71,130 sq ft industrial unit on Ashby Park, Ashby de-la-Zouch, Leicestershire, located at junction 13 of the A42 which links the M1 and M6. 

The unit is let to Teleperformance Limited on a lease expiring on 31 March 2018.  Total passing rent is £465,000 per annum, reflecting a net initial yield of 10.22%.

The agreed purchase price of £4.3 million was funded from the Company's existing credit facilities, with net borrowings following the acquisition of 10.5% loan to value.

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

"Ashby Park is a well-recognised distribution location in the 'Golden Triangle' and its multinational tenants include McVities and Siemens.  The market is experiencing significant demand for industrial units in this area which will leave Custodian REIT in a strong position at lease renewal in 2018." 

-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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