Purchase of Property

RNS Number : 1944G

Custodian REIT PLC

04 August 2016

 

4 August 2016

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 105,757 sq ft distribution unit on Winsford Industrial Estate, located 10 miles from junctions 18 and 19 of the M6.  Nearby occupiers include Henkel, Iveco and Jiffy Packaging.

The unit is let to H&M Hennes and Mauritz UK Limited on a lease expiring on 23 June 2025.  Current passing rent is £423,000 per annum reflecting a net initial yield of 7.15%, with an expected reversionary yield of circa 8.5%.

The agreed purchase price of £5.55 million was funded from the Company's existing cash resources, resulting in net gearing¹ increasing to 13.9% loan to value.

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

"We are delighted to have secured this modern, well located unit let to a market leading high street retailer.  This recently refurbished unit is one of H&M's three UK distribution locations and includes circa 1.8 acres of potential expansion land to meet future requirements."

¹ Gross borrowings less unrestricted cash divided by property portfolio valuation.

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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

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 £10 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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