Custodian REIT PLC Disposal of Property (6630A)
28 March 2017 - 5:02PM
UK Regulatory
TIDMCREI
RNS Number : 6630A
Custodian REIT PLC
28 March 2017
28 March 2017
Custodian REIT plc
("Custodian REIT" or the "Company")
Disposal of Property
Custodian REIT (LSE: CREI), the UK property investment company,
is pleased to announce the disposal of a property from its
portfolio.
The Company has sold a 24,582 sq ft car dealership on Mobberley
Road, Knutsford for GBP7.0 million, GBP0.72 million (11.5%) ahead
of the last valuation at 31 December 2016, representing a net
initial yield of 4.92%. The property is let to R Stratton & Co
Limited on a lease expiring in 2058, subject to break options in
2028, 2038 and 2048.
The property was purchased for GBP5.72 million as part of the
initial portfolio acquired on the Company's admission to the London
Stock Exchange in 2014. The Company intends to use the proceeds
from the disposal to fund acquisitions better aligned to its
investment strategy.
Commenting on the disposal, Richard Shepherd-Cross, Managing
Director of Custodian Capital Limited (the Company's external fund
manager), said:
"The current lack of available investment stock, coupled with
strong demand, has led to valuations of this type of property
showing significant increases over the last 18 months. Despite a
long term lease being in place, we believe this was the right time
to take advantage of market conditions and crystallise a
significant valuation gain."
- 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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