Purchase of Property

RNS Number : 9296L

Custodian REIT PLC

07 October 2016

 

7 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 44,643 sq ft distribution unit on Heartlands Business Park, Daventry, located within 10 miles of junction 16 of the M1 and the M45.  Nearby occupiers include Wincanton, Wetherspoons, Ceva, Netto and Hankook.

The unit is let to Cummins Limited on a lease expiring on 15 July 2019.  Current passing rent is £221,045 per annum reflecting a net initial yield of 6.75%.

The agreed purchase price of £3.08 million was funded from the Company's existing debt facilities, resulting in net gearing¹ increasing to 23.1% 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 acquired another modern industrial unit which we believe has strong reversionary potential.  Daventry is an established, Midlands distribution location due to its excellent motorway and A-road access.  The completion of the current Daventry link road project will improve access to junction 16 of the M1, further enhancing the appeal of the location to current and prospective tenants."

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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