Purchase of Property

RNS Number : 7655D

Custodian REIT PLC

02 May 2017

 

2 May 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 22,663 sq ft retail warehouse on Southbrook Retail Park, Gloucester, near the town centre and within three miles of the M5.  The site comprises two units occupied by Magnet and Smyths Toys, with nearby retailers including Halfords, B&M Bargains, Lidl, The Range and McDonalds.

The units' leases expire on 9 September 2024 and 28 September 2021 respectively with a total passing rent of £373,100 per annum, reflecting a net initial yield of 7.41%.

The agreed purchase price of £4.725 million was funded from the Company's existing cash resources, resulting in net gearing¹ increasing to 15.7% 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 prominently located property within Gloucester's prime out of town retail pitch.  Magnet and Smyths Toys are both strong nationally established tenants who add to Custodian REIT's retail warehouse portfolio.  Magnet has been in occupation since the unit was constructed and Smyths Toys has recently undertaken a substantial fit out of the property demonstrating its commitment to the location."

1. Gross borrowings less unrestricted cash divided by 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 properties with individual 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 sub £10 million lot size, regional 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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