Disposal of Property

RNS Number : 6630A

Custodian REIT PLC

28 March 2017

 

28 March 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 24,582 sq ft car dealership on Mobberley Road, Knutsford for £7.0 million, £0.72 million (11.5%) ahead of the last valuation at 31 December 2016, representing a net initial yield of 4.92%.  The property is let to R Stratton & Co Limited on a lease expiring in 2058, subject to break options in 2028, 2038 and 2048.

The property was purchased for £5.72 million as part of the initial portfolio acquired on the Company's admission to the London Stock Exchange in 2014.  The Company intends to use the proceeds from the disposal to fund acquisitions better aligned to its investment strategy. 

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

"The current lack of available investment stock, coupled with strong demand, has led to valuations of this type of property showing significant increases over the last 18 months. Despite a long term lease being in place, we believe this was the right time to take advantage of market conditions and crystallise a significant valuation gain."

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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 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 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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