Custodian REIT PLC Purchase of Property (6479S)
December 23 2016 - 1:00AM
UK Regulatory
TIDMCREI
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
GBP474,867 per annum reflecting a net initial yield of 6.96%.
The agreed purchase price of GBP6.4 million was funded from the
Company's existing debt facilities, resulting in net gearing(1)
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 Tel: +44 (0)116 240
Imlach / Ian Mattioli 8740
www.custodiancapital.com
Numis Securities Limited
Nathan Brown / Hugh Jonathan Tel: +44 (0)20 7260 1000
www.numiscorp.com
Camarco
Ed Gascoigne-Pees Tel: +44 (0)20 3757 4984
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 GBP10 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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