Purchase of Property

RNS Number : 3059L

Custodian REIT PLC

18 July 2017

 

18 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 42,289 sq ft car dealership, located at the 'Pyramid Roundabout', Stockport one mile from the town centre on Junction 1 of the M60.  Nearby occupiers include Audi, Volkswagen, Lexus, Hyundai and Mazda.

The property is let to Benham (Specialist Cars) Limited (t/a Williams Stockport BMW and Williams Stockport Mini) on a lease expiring on 23 August 2057 with break options every 10 years and RPI rental uplifts every five years. The current passing rent of £658,532 per annum, reflecting a net initial yield¹ of 6.99%, is expected to increase to circa £732,350 per annum at the August 2017 rent review, reflecting a reversionary yield of 7.77%.

The agreed purchase price of £8.84 million was funded from the Company's existing cash resources, resulting in net gearing² increasing to 20.0% 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 secured this property well-established within Stockport's premier motor retail pitch, let to a national motor retailer on a long-term lease.   The lease has the benefit of RPI linked increases providing a strong reversionary yield."

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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