Custodian REIT PLC Purchase of Property (1198I)
June 15 2017 - 1:00AM
UK Regulatory
TIDMCREI
RNS Number : 1198I
Custodian REIT PLC
15 June 2017
15 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 69,922 sq ft distribution unit on
Eurocentral, Scotland's leading mixed-use business park on the M8
arterial route between Glasgow and Edinburgh. Nearby occupiers
include DHL, Warburtons, Argos, Wincanton, Norbert Dentressangle
and Morrisons.
The unit is let to Next plc on a lease expiring on 6 March 2019.
Current passing rent is GBP349,850 per annum reflecting a net
initial yield(1) of 6.91%, with an expected reversionary yield of
circa 7.9%.
The agreed purchase price of GBP4.75 million was funded from the
Company's existing cash resources, resulting in net gearing(2)
increasing to 18.6% 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 secured this unit located on
Scotland's prime distribution park and let to a market leading high
street retailer. The unit is Next's only distribution location in
Scotland, which has undergone substantial fit out including the
installation of a mezzanine floor at the tenant's expense. The site
also provides scope for future expansion of the unit should it be
required."
(1) Passing rent divided by purchase price plus assumed
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 Tel: +44 (0)116 240
Imlach / Ian Mattioli MBE 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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