Purchase of Property

RNS Number : 4327B

Custodian REIT PLC

07 October 2015

 

7 October 2015

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 Lancaster House, a prominent, 39,600 sq ft office building on the corner of Newhall Street and Great Charles Street, in Birmingham city centre.

The property is let to 15 tenants with lease expiries between 30 June 2016 and 31 July 2025, with a total passing rent of £505,752 per annum, reflecting a net initial yield of 7.19%.  Upon the letting of the last remaining, fully refurbished office suite, the expected yield will be enhanced to 7.64%

The agreed purchase price of £6,650,000 was funded from the Company's existing debt facilities, resulting in net borrowings increasing to 18.2% 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 recently refurbished office building in Birmingham city centre where the office market is resurgent and prospects for rental growth strong.  The property offers open-plan, 2,000-3,350 sq ft office suites which are a good fit with local occupational demand.  This, combined with reducing supply, as a result of a number of nearby buildings being converted to residential use, could further compound rental growth prospects."

-Ends-

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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