Custodian REIT plc : Purchase of Property

Custodian REIT plc (CREI) Custodian REIT plc : Purchase of Property 27-Jul-2018 / 07:00 GMT/BST Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.     27 July 2018   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 16,770 sq ft car dealership on Battlefield Enterprise Park, Shrewsbury's premier car sales location, four miles from the town centre and five miles from the busy A6, linking Shrewsbury to the West Midlands.  Nearby occupiers include Audi, Volkswagen, BMW, Mercedes-Benz, Renault, and Ford.   The property is let to TJ Vickers and Sons Limited on a lease expiring on 31 September 2025 with a current passing rent of £120,000 per annum, reflecting a net initial yield1 of 6.75%.   The agreed purchase price of £1.67 million was funded from the Company's existing debt resources, resulting in net gearing2 increasing to 20.8% 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 within Shrewsbury's prime motor retail pitch, let on a long-term lease to a strong tenant.  The Company has exchanged contracts to acquire an adjacent Audi dealership, which will create economies of scale in managing both properties and assist with any future asset management."   1 Passing rent divided by valuation plus estimated 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   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 principally 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.

ISIN:	GB00BJFLFT45
Category Code:	MSCH
TIDM:	CREI
LEI Code:	2138001BOD1J5XK1CX76
OAM Categories:	3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.:	5791
EQS News ID:	708443

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End of Announcement	EQS News Service