Purchase of Property

RNS Number : 7314H

Custodian REIT PLC

12 June 2017

 

12 June 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 20,678 sq ft distribution unit on Access 26 Business Park, Langley Mill, located near junction 26 of the M1.  Nearby occupiers include DHL, 3663 Logistics and Travis Perkins.

The unit is let to Warburtons Limited on a lease expiring on 2 December 2022.  Current passing rent is £143,800 per annum reflecting a net initial yield¹ of 6.29%.

The agreed purchase price of £2.15 million was funded from the Company's existing cash resources, resulting in net gearing² increasing to 17.8% 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 modern unit in a strong distribution location.  There is significant demand in the Midlands for high quality units with good communication links and we expect this demand to lead to rental growth at the upcoming review in December 2017."

¹ Passing rent divided by 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 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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