Purchase of Property

RNS Number : 4738S

Custodian REIT PLC

03 October 2017

 

3 October 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 43,370 sq ft distribution unit on Houston Industrial Estate, Livingston, one of the most established industrial centres in Scotland at junction three of the M8, 15 miles from Edinburgh and 30 miles from Glasgow.  Nearby occupiers include Booker, Iceland and Hays.

The unit is let to A Share & Sons Limited (trading as SCS) on a lease expiring on 2 October 2022.  The agreed purchase price reflects a net initial yield¹ of 7.5%, subject to agreement of an ongoing rent review.

The agreed purchase price of £2.59 million was funded from the Company's existing debt facilities, resulting in net gearing² increasing to 19.4% 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 unit located on one of Scotland's prime distribution parks and let to a market leading retailer.  The unit is SCS's only distribution location in Scotland and the tenant is committed to the site."

¹ Passing rent divided by purchase price plus assumed purchasers' costs.

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

-Ends-

For further information, please contact:

Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach / Ian Mattioli MBE	Tel: [phone]
	www.custodiancapital.com

Numis Securities Limited
Hugh Jonathan/Nathan Brown	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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