Disposal of Property

RNS Number : 0057X

Custodian REIT PLC

16 February 2017

 

16 February 2017

Custodian REIT plc

("Custodian REIT" or the "Company")

Disposal of Property

Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the disposal of a property from its portfolio. 

The Company has sold a 22,286 sq ft public house on Palmerston Road, Southsea for £1.67 million, £0.19 million ahead of the 31 December 2016 valuation.  The property is let to JD Wetherspoon plc on a lease expiring in 2040.

The property was part of a portfolio acquired in August 2014.  The Company intends to use the proceeds from the disposal to fund acquisitions better aligned to its long term investment strategy. 

Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's external fund manager), said:

"We are delighted to crystallise a 12.8% valuation.  Despite the long-term lease, the yield is significantly below target and we believe the disposal proceeds can be redeployed on property with a better income yield and the potential for capital growth."

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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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