Custodian REIT plc : Purchase of Property (1158655)
January 05 2021 - 10:30AM
UK Regulatory
Custodian REIT plc (CREI)
Custodian REIT plc : Purchase of Property
05-Jan-2021 / 16:30 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 January 2021
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 Willow Court, a 22,545 sq ft office building on
Minns Business Park, one mile west of Oxford city centre and adjacent to the
A34, which connects the M4 and M40. Other occupants of the business park
include Oxford University Innovation, Barclays, Savills, Blake Morgan and
Knights LLP.
The property comprises four floors let to RBS, Dehns, Charles Stanley,
Oxentia and the Smith Institute with a weighted average unexpired lease term
to first break or expiry of 4 years and an aggregate rent of GBP537,496 per
annum, reflecting a net initial yield[1] of 6.41%.
The agreed purchase price of GBP7.86 million was funded from the Company's
existing debt facilities, resulting in net gearing[2] increasing to 24.4%
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 office building in a proven location
with a strong tenant line-up. Due to local development restrictions office
supply in the vicinity has a history of high demand. The modern and recently
refurbished property also has potential asset management opportunities to
enhance value and extend its income profile."
1 Passing rent divided by valuation plus estimated purchaser's costs.
2 Gross borrowings less cash (excluding tenant rental deposits and
retentions) divided by last published property portfolio value.
-Ends-
For further information, please contact:
Custodian Capital Limited
Richard Shepherd-Cross / Ed Moore / Tel: +44 (0)116 240 8740
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 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 [2] and
www.custodiancapital.com [1].
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ISIN: GB00BJFLFT45
Category Code: MSCU
TIDM: CREI
LEI Code: 2138001BOD1J5XK1CX76
Sequence No.: 90872
EQS News ID: 1158655
End of Announcement EQS News Service
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