Purchase of Property

RNS Number : 6479S

Custodian REIT PLC

23 December 2016

 

23 December 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 34,686 sq ft unit on Hanover Street, Liverpool located opposite Liverpool ONE, the city's leading retail and leisure destination.  The property comprises the ground and first floors beneath one of Premier Inn's busy city centre hotels, with other nearby occupiers including Nando's, John Lewis, Home Bargains, Tesco, Subway, Ted Baker and Primark.

The property consists of a large restaurant let to Ocean Park Limited (trading as Tai Pan) and a health centre let to Liverpool Community Health NHS Trust, on leases expiring on 15 April 2038 and 31 October 2023 respectively.  The current passing rent is £474,867 per annum reflecting a net initial yield of 6.96%.

The agreed purchase price of £6.4 million was funded from the Company's existing debt facilities, resulting in net gearing¹ increasing to 17.2% 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 restaurant and health centre located in a prime area of Liverpool city centre, adjacent to Liverpool ONE, in an established bar and restaurant pitch.  We believe the property has strong reversionary potential and that further diversification of the portfolio into both leisure and health care adds an additional positive dimension to this acquisition."

-Ends-

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

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.

 

END

 

 

ACQPGGUUPUPQGAP