Custodian REIT PLC Purchase of Property (9296L)
07 October 2016 - 5:00PM
UK Regulatory
TIDMCREI
RNS Number : 9296L
Custodian REIT PLC
07 October 2016
7 October 2016
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 44,643 sq ft distribution unit on
Heartlands Business Park, Daventry, located within 10 miles of
junction 16 of the M1 and the M45. Nearby occupiers include
Wincanton, Wetherspoons, Ceva, Netto and Hankook.
The unit is let to Cummins Limited on a lease expiring on 15
July 2019. Current passing rent is GBP221,045 per annum reflecting
a net initial yield of 6.75%.
The agreed purchase price of GBP3.08 million was funded from the
Company's existing debt facilities, resulting in net gearing(1)
increasing to 23.1% 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 another modern industrial
unit which we believe has strong reversionary potential. Daventry
is an established, Midlands distribution location due to its
excellent motorway and A-road access. The completion of the current
Daventry link road project will improve access to junction 16 of
the M1, further enhancing the appeal of the location to current and
prospective tenants."
(1) 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 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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