Purchase of Property

RNS Number : 9242R

Custodian REIT PLC

02 July 2015

 

2 July 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. 

The Company has acquired a 16,143 sq ft industrial unit at Glasgow International Airport let to DHL Global Forwarding (UK) Limited on a lease expiring on 31 March 2020.  Net passing rent is £92,385 per annum, reflecting a net initial yield of 7.08%.  Other logistics occupiers at the airport include UPS and Expeditors.  

The agreed purchase price of £1.233 million was funded from the Company's existing credit facilities, with net borrowings following the acquisition of 17.2% loan to value.

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

"The unit is situated at Glasgow International Airport, one of the UK's busiest airports serving its fourth largest city by population.  This is an ideal location for DHL being adjacent to both the airport and the M8 motorway, only 7.5 miles west of the city centre.  It comprises one of only a handful of similar units at the airport.  Priced to reflect a net initial yield of over 7% this is another example of the relative value of small lot size property". 

-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, 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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