Purchase of Property

RNS Number : 9543T

Custodian REIT PLC

12 January 2017

 

12 January 2017

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 block of six retail properties and two restaurants in Shrewsbury town centre located in the prime pitch at the corner of Pride Hill and High Street.  The properties are occupied by Paperchase, Holland & Barrett, Azzuri Restaurants (t/a ASK), Edinburgh Woollen Mill, Thomas Cook, Greggs, Sam's Club (t/a House of the Rising Sun), Whittards and William Hill.

Leases expire between 15 January 2018 and 23 June 2038 representing a weighted average unexpired lease term (to first break or expiry) of 6.0 years.  The current passing rent is £667,300 per annum reflecting a net initial yield of 6.07%.

The agreed purchase price of £10.3 million was funded from the Company's existing debt facilities, resulting in net gearing¹ increasing to 19.6% 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 acquired this very prominent block in Shrewsbury's prime retail pitch.  The town benefits from a large and affluent catchment population and is a strong draw for local and tourist visitors alike.  The town centre enjoys a very high occupancy rate, many leading national multiple retailers and a thriving independent retailer mix, demonstrating its strength and vitality as a retail destination."

¹ Gross borrowings less unrestricted cash divided by last published property portfolio valuation adjusted for acquisitions and disposals.

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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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