Custodian REIT PLC Purchase of Property (7314H)
June 12 2017 - 1:00AM
UK Regulatory
TIDMCREI
RNS Number : 7314H
Custodian REIT PLC
12 June 2017
12 June 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 20,678 sq ft distribution unit on
Access 26 Business Park, Langley Mill, located near junction 26 of
the M1. Nearby occupiers include DHL, 3663 Logistics and Travis
Perkins.
The unit is let to Warburtons Limited on a lease expiring on 2
December 2022. Current passing rent is GBP143,800 per annum
reflecting a net initial yield(1) of 6.29%.
The agreed purchase price of GBP2.15 million was funded from the
Company's existing cash resources, resulting in net gearing(2)
increasing to 17.8% 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 unit in a strong
distribution location. There is significant demand in the Midlands
for high quality units with good communication links and we expect
this demand to lead to rental growth at the upcoming review in
December 2017."
(1) Passing rent divided by valuation plus estimated purchasers'
costs.
(2) Gross borrowings less unrestricted cash divided by last
published property portfolio valuation.
-Ends-
For further information, please contact:
Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach / Tel: +44 (0)116 240 8740
Ian Mattioli MBE
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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