Custodian REIT PLC Purchase of Property (5323Y)
06 March 2017 - 6:00PM
UK Regulatory
TIDMCREI
RNS Number : 5323Y
Custodian REIT PLC
06 March 2017
6 March 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 high street retail property in
Chester, let to Signet Trading Limited (t/a Ernest Jones) and
Feldale Retail Limited (t/a Lakeland). The property is located in
the city centre on the pedestrianised Eastgate Street, adjoining
two other units in the Company's portfolio. Nearby occupiers
include Cath Kidston, Jack Wills, Kuoni Travel, H Samuel, Fat Face
and Accessorize.
Leases expire in September 2021 and September 2026 with a
combined current passing rent of GBP140,000 per annum reflecting a
net initial yield of 4.78%.
The agreed purchase price of GBP2.75 million was funded from the
Company's existing debt facilities, resulting in net gearing(1) of
17.6% 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 acquired this prominent unit within
Chester's prime retail pitch. Chester is a leading destination for
retail in the region due to a thriving tourism industry and
excellent transport links. The unit adjoins two properties held by
Custodian REIT, providing a 'marriage value' which we expect to
result in an overall valuation increase for the combined lot."
(1) Gross borrowings less unrestricted cash divided by last
published property portfolio valuation adjusted for acquisitions
and disposals.
-Ends-
For further information, please contact:
Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach / Tel: +44 (0)116 240
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 properties 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 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
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