Purchase of Property

RNS Number : 8068L

Custodian REIT PLC

06 October 2016

 

6 October 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 92,672 sq ft distribution unit on Centrum 100 Business Park, Burton upon Trent, located close to the A38 and A50 with links to the M1, M6 and M42.  Nearby occupiers include Boots, DHL, Clipper Logistics and Palletforce.

The unit is let to Kings Road Tyres and Repairs Limited on a lease expiring on 26 July 2031, subject to a tenant's option to break in 2021.  Current passing rent is £509,696 per annum reflecting a net initial yield of 6.77%.

The agreed purchase price of £7.06 million was funded from the Company's existing debt facilities, resulting in net gearing¹ increasing to 22.6% 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 acquired this modern unit located in the 'Golden Triangle' of UK distribution.  The Midlands is experiencing significant demand for high quality units with good communication links, demonstrated by the strong list of occupiers on this park.  We expect these factors to lead to high demand and future rental growth."

¹ Gross borrowings less unrestricted cash divided by last published property portfolio valuation.

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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 £10 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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