Custodian REIT plc : Purchase of Property (740887)
November 05 2018 - 1:02AM
UK Regulatory
Dow Jones received a payment from EQS/DGAP to publish this press
release.
Custodian REIT plc (CREI)
Custodian REIT plc : Purchase of Property
05-Nov-2018 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
5 November 2018
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 high street unit on The Grove in Stratford, East
London, comprising a ground floor retail unit with an upper floor office
suite. Nearby occupiers include Morrisons, Boots, Argos, Lidl and Nando's.
The property is let to Foxton's Estate Agents and The Incorporated Trustees
of the Universal Church of the Kingdom of God ("UCKG") with leases expiring
on 30 April 2031 and 2 May 2025 respectively and a current passing rent of
GBP150,935 per annum, reflecting a net initial yield[1] of 6.78%.
The agreed purchase price of GBP2.1 million was funded from the Company's
existing debt resources, resulting in net gearing[2] increasing to 20.6%
loan to value.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of
Custodian Capital Limited (the Company's discretionary investment manager),
said:
"Following the London 2012 Olympics, Stratford is now well established as
East London's most significant retail and leisure destination, with
completion of the Crossrail project due in December 2019 set to further
enhance the area. Both tenants are committed to the location having recently
renewed their leases at higher rents and the resulting weighted average
unexpired lease term to first break of over eight years adds secure income
to the portfolio. The title provides the ability to use the adjacent
Morrison's car park without restriction, providing almost unlimited car
parking, which is a major selling point should the premises ever become
vacant."
1 Passing rent divided by valuation 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 8740
Imlach / Ian Mattioli MBE
www.custodiancapital.com
[1]
Numis Securities
Limited
Hugh Tel: +44 (0)20 7260 1000
Jonathan/Nathan
Brown
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 small lot
sizes, with individual property values of less than GBP10m 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 [2] and
www.custodiancapital.com [1]..
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ISIN: GB00BJFLFT45
Category Code: MSCH
TIDM: CREI
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 6433
EQS News ID: 740887
End of Announcement EQS News Service
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c24dec6d0ea6c746569ddd52de0eca8d&application_id=740887&site_id=vwd_london&application_name=news
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=44eae66ce326b2005a19503bbab5faed&application_id=740887&site_id=vwd_london&application_name=news
(END) Dow Jones Newswires
November 05, 2018 02:02 ET (07:02 GMT)
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