Purchase of Property

RNS Number : 0478F

Custodian REIT PLC

15 May 2017

 

15 May 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 31,062 sq ft retail warehouse in Galashiels, located on the A7 close to the town centre and railway station.  Nearby occupiers include Tesco, Asda, Halfords and Aldi.

The property is let to B&Q plc on a lease expiring on 27 December 2024 with a current passing rent of £275,000 per annum, reflecting a net initial yield¹ of 8.24%.

The agreed purchase price of £3.145 million was funded from the Company's existing debt facilities, resulting in net gearing² increasing to 16.8% 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 secured this property let to a well-known retailer on a long-term lease. The property is the dominant DIY store in a wide catchment area and is centrally located in Galashiels, which is a major commercial centre for the Scottish Borders region.  The tenant has been in occupation since 1980 and remains committed to the property having recently concluded a major estate transformation plan."

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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