Purchase of Property

RNS Number : 6642S

Custodian REIT PLC

23 December 2016

 

23 December 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 37,598 sq ft health and fitness centre on George Eastham Avenue, Stoke-on-Trent, located at the junction of the A50 and A500 which links to junctions 15 and 16 of the M6.  The property is adjacent to the Stoke City Football Club stadium, a Holiday Inn, Harvester and Audi, Lexus and Volkswagen car dealerships.

The unit is let to Greens Health & Fitness Limited (trading as Nuffield Health) on a lease expiring on 18 April 2025, with current passing rent of £349,209 per annum reflecting a net initial yield of 6.75%.

The agreed purchase price of £4.855 million, was funded from the Company's existing debt facilities, resulting in net gearing¹ increasing to 18.0% 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 more than eight years remaining on the lease.  The tenant has demonstrated a strong commitment to the location and we believe there is reversionary potential at the 2020 rent review.  This property adds further diversification to the portfolio. "

-Ends-

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

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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