Purchase and Disposal of Properties

RNS Number : 4216Z

Custodian REIT PLC

18 September 2015

 

18 September 2015

Custodian REIT plc

("Custodian REIT" or "the Company")

Purchase and Disposal of Properties

Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce a further property purchase and a property disposal. 

Property purchase

The Company has acquired a 19,493 sq ft trade counter unit on Stephenson Road, North Hykeham, three miles south-west of Lincoln and one mile from the A46.

The unit is let to MKM Building Supplies Limited on a lease expiring on 10 June 2022.  Net passing rent is £169,711 per annum, reflecting a net initial yield of 6.90%, with a fixed rental uplift to £192,012 per annum from June 2017 reflecting a reversionary yield of 7.81%.  Adjacent occupiers include Lindum Group, Lincolnshire County Council and Scott Storage.

The agreed purchase price of £2.325 million was funded from the Company's existing credit facilities, with net borrowings following the acquisition of 16.0% loan to value. 

Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's discretionary investment manager), said:

"The lease carries a fixed uplift in 2017 and the tenant has demonstrated its commitment to the location.  The site is prominently located in the principal commercial district of Lincoln bordered by the B1190, A1434 and B1003, providing good road links.  Land adjacent to the property has seen the recent development of purpose built units, emphasising the strength and demand for good quality property in this strategic area".

Property disposal

The Company has disposed of a 2,313 sq ft retail unit located on Union Street, Swansea for a consideration of £0.5 million, £0.1 million above its 19 June 2015 acquisition value.  The property was acquired as part of a portfolio, but is regarded as being subscale for the Company.  The sale proceeds will be used to help fund acquisitions which better fit the Company's investment strategy. 

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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 £7.5 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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