Purchase of Property

RNS Number : 5323Y

Custodian REIT PLC

06 March 2017

 

6 March 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 high street retail property in Chester, let to Signet Trading Limited (t/a Ernest Jones) and Feldale Retail Limited (t/a Lakeland).  The property is located in the city centre on the pedestrianised Eastgate Street, adjoining two other units in the Company's portfolio.  Nearby occupiers include Cath Kidston, Jack Wills, Kuoni Travel, H Samuel, Fat Face and Accessorize.

Leases expire in September 2021 and September 2026 with a combined current passing rent of £140,000 per annum reflecting a net initial yield of 4.78%.

The agreed purchase price of £2.75 million was funded from the Company's existing debt facilities, resulting in net gearing¹ of 17.6% 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 prominent unit within Chester's prime retail pitch.  Chester is a leading destination for retail in the region due to a thriving tourism industry and excellent transport links.  The unit adjoins two properties held by Custodian REIT, providing a 'marriage value' which we expect to result in an overall valuation increase for the combined lot."

¹ Gross borrowings less unrestricted cash divided by last published property portfolio valuation adjusted for acquisitions and disposals.

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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 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 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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