Purchase of Property

RNS Number : 6487P

Custodian REIT PLC

22 February 2016

 

22 February 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 34,955 sq ft retail warehouse in Banbury, located one mile from junction 11 of the M40 and within walking distance of the town centre and railway station.  Nearby occupiers include Wickes, Halfords, Homebase, Dunelm Mill, Topps Tiles and Staples.

The property is let to B&Q Plc on a lease expiring on 24 March 2022 with a current passing rent of £478,842 per annum, reflecting a net initial yield of 6.94%.

The agreed purchase price of £6.525 million was funded from the Company's existing debt facilities, resulting in net borrowings increasing to 20.1% 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 let to B&Q which has been in occupation for 29 years.  The unit is prominently located in an established bulky goods retail warehouse pitch, near the Banbury Cross Retail Park.  The development of a proposed 42,000 sq ft Waitrose on land opposite will further strengthen the location."

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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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