Purchase of Property

RNS Number : 1198I

Custodian REIT PLC

15 June 2017

 

15 June 2017

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 69,922 sq ft distribution unit on Eurocentral, Scotland's leading mixed-use business park on the M8 arterial route between Glasgow and Edinburgh.  Nearby occupiers include DHL, Warburtons, Argos, Wincanton, Norbert Dentressangle and Morrisons.

The unit is let to Next plc on a lease expiring on 6 March 2019.  Current passing rent is £349,850 per annum reflecting a net initial yield¹ of 6.91%, with an expected reversionary yield of circa 7.9%.

The agreed purchase price of £4.75 million was funded from the Company's existing cash resources, resulting in net gearing² increasing to 18.6% 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 secured this unit located on Scotland's prime distribution park and let to a market leading high street retailer.  The unit is Next's only distribution location in Scotland, which has undergone substantial fit out including the installation of a mezzanine floor at the tenant's expense.  The site also provides scope for future expansion of the unit should it be required."

¹ Passing rent divided by purchase price plus assumed purchasers' costs.

² 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 MBE	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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