Purchase of Property

RNS Number : 4158V

Custodian REIT PLC

18 April 2016

 

18 April 2016

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 a high street retail unit in Chester, let to TSB Limited and Ciel (Concessions) Limited (trading as Chesca).  The property is located in the city centre on the pedestrianised Eastgate Street near Cath Kidston, Jack Wills, Kuoni Travel, H Samuel, Fat Face and Jaeger.

The tenants' leases expire between September 2019 and March 2020 with a total passing rent of £128,000 per annum, reflecting a net initial yield of 5.87%.

The agreed purchase price of £2,050,000 was funded from the Company's existing debt facilities, resulting in net borrowings increasing to 18.8% 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 property located within the prime retail pitch, adjoining an existing Custodian REIT property.  This acquisition enhances the Company's existing holding in the city of Chester which stands out as a dominant retail centre in the region."

-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.

 

END

 

 

ACQGGUQGCUPQGQA