Custodian REIT PLC Purchase of Property (7086Z)
December 19 2017 - 1:00AM
UK Regulatory
TIDMCREI
RNS Number : 7086Z
Custodian REIT PLC
19 December 2017
19 December 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 24,845 sq ft car dealership on Pride
Park business park in Derby, two miles from the city centre and
prominently located on the busy A6. Nearby occupiers include Rolls
Royce, Volkswagen, Lexus, Mercedes-Benz, Land Rover, and Ford.
The property is let to VW Group UK Limited and sub-let to
Goodman Retail Limited (trading as Sytner) on a lease expiring on
23 November 2025 with a current passing rent of GBP342,500 per
annum, reflecting a net initial yield(1) of 6.28%.
The agreed purchase price of GBP5.115 million was funded from
the Company's existing cash resources, resulting in net gearing(2)
increasing to 19.4% 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 well-established property
within Derby's prime motor retail pitch, let to one of the UK's
largest motor retailers on a long-term lease. The tenant has
recently undertaken significant refurbishment works at the
property, including an extension to the showroom floorplate, which
demonstrates its commitment to the site."
(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 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
principally characterised by properties with individual 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 sub GBP10 million lot size,
regional 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
MSCGGGRPPUPMGMR
(END) Dow Jones Newswires
December 19, 2017 02:00 ET (07:00 GMT)
Custodian Property Incom... (LSE:CREI)
Historical Stock Chart
From Apr 2024 to May 2024
Custodian Property Incom... (LSE:CREI)
Historical Stock Chart
From May 2023 to May 2024