Disposal of Property

RNS Number : 7757O

Custodian REIT PLC

10 November 2016

 

10 November 2016

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 9,144 sq ft car dealership on Coventry Road, Solihull for £1.88 million, £0.35 million ahead of the 30 September 2016 valuation.  The property is let to Allen Ford (UK) Limited on a lease expiring in 2021.

The property was 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 long term investment strategy. 

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

"Having identified an owner-occupier to purchase the site, we were delighted to crystallise a 22.9% valuation gain on the disposal of the property.  We believed the property to be over-rented and expect to redeploy the sale proceeds on property with better short-term income growth and long-term capital growth potential."

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For further information, please contact:

Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach / Ian Mattioli	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 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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