Purchase of Property

RNS Number : 3178R

Custodian REIT PLC

08 March 2016

 

8 March 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 the 34,121 sq ft St. Catherine's Leisure Park in Perth, comprising three units let to Bannatyne Fitness Limited, Scotco (Eastern) Limited (trading as KFC) and The Restaurant Group (UK) Limited (trading as Frankie and Benny's).  The park is within walking distance of the town centre and railway station, and is adjacent to St. Catherine's Retail Park, whose occupiers include Curry's PC World, Dunelm Mill, Halfords, Home Bargains, Maplin, Sports Direct and T K Maxx.

The units' leases expire between July and August 2026 with a current passing rent of £389,115 per annum in aggregate, reflecting a net initial yield of 8.17%.

The agreed purchase price of £4.5 million was funded from the Company's existing debt facilities, resulting in net borrowings increasing to 20.2% 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 leisure park with all three units let to strong tenants on leases with over 10 years to expiry, which enhances the Company's lease expiry profile.  All three tenants have rent reviews this year and we believe the properties have reversionary potential.  The park is well located next to St. Catherine's Retail Park, making this a sought after location for retail and leisure operators alike.  Plans for a nearby cinema development, if completed, will further strengthen the area."

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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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