Purchase of Property

RNS Number : 4160M

Custodian REIT PLC

28 July 2017

 

28 July 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 24,230 sq ft health and fitness centre in Salisbury, located less than two miles from the city centre and prominently fronting on to the A30, the main arterial road into the city from the North.  Adjacent businesses include Premier Inn, Handelsbanken, Busy Bees nursery and a BMW/Mini dealership.

The unit is let to Parkwood Health & Fitness Limited on a lease expiring on 2 March 2031, with current passing rent of £200,000 per annum reflecting a net initial yield¹ of 6.75%.

The agreed purchase price of £2.785 million was funded from the Company's existing cash resources, resulting in net gearing² increasing to 20.5% 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 high specification, purpose-built health and fitness centre in an established and prominent location with 14 years remaining on the lease.  This property adds further diversification to the portfolio by increasing exposure to the alternative sector, and its prominent position lends itself to alternative uses in the event of a future vacancy."

¹ Portfolio passing rent divided by portfolio valuation plus estimated purchasers' costs.

² Gross borrowings less unrestricted cash divided by last published property portfolio valuation.

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For further information, please contact:

Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach / Ian Mattioli MBE	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 properties with individual 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 sub £10 million lot size, regional 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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