Custodian REIT PLC Purchase of Property (9543T)
January 12 2017 - 1:00AM
UK Regulatory
TIDMCREI
RNS Number : 9543T
Custodian REIT PLC
12 January 2017
12 January 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 block of six retail properties and
two restaurants in Shrewsbury town centre located in the prime
pitch at the corner of Pride Hill and High Street. The properties
are occupied by Paperchase, Holland & Barrett, Azzuri
Restaurants (t/a ASK), Edinburgh Woollen Mill, Thomas Cook, Greggs,
Sam's Club (t/a House of the Rising Sun), Whittards and William
Hill.
Leases expire between 15 January 2018 and 23 June 2038
representing a weighted average unexpired lease term (to first
break or expiry) of 6.0 years. The current passing rent is
GBP667,300 per annum reflecting a net initial yield of 6.07%.
The agreed purchase price of GBP10.3 million was funded from the
Company's existing debt facilities, resulting in net gearing(1)
increasing to 19.6% 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 very prominent block in
Shrewsbury's prime retail pitch. The town benefits from a large and
affluent catchment population and is a strong draw for local and
tourist visitors alike. The town centre enjoys a very high
occupancy rate, many leading national multiple retailers and a
thriving independent retailer mix, demonstrating its strength and
vitality as a retail destination."
(1) Gross borrowings less unrestricted cash divided by last
published property portfolio valuation adjusted for acquisitions
and disposals.
-Ends-
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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