Custodian REIT PLC Purchase of Property (0478F)
15 May 2017 - 4:00PM
UK Regulatory
TIDMCREI
RNS Number : 0478F
Custodian REIT PLC
15 May 2017
15 May 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 31,062 sq ft retail warehouse in
Galashiels, located on the A7 close to the town centre and railway
station. Nearby occupiers include Tesco, Asda, Halfords and
Aldi.
The property is let to B&Q plc on a lease expiring on 27
December 2024 with a current passing rent of GBP275,000 per annum,
reflecting a net initial yield(1) of 8.24%.
The agreed purchase price of GBP3.145 million was funded from
the Company's existing debt facilities, resulting in net gearing(2)
increasing to 16.8% 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 property let to a
well-known retailer on a long-term lease. The property is the
dominant DIY store in a wide catchment area and is centrally
located in Galashiels, which is a major commercial centre for the
Scottish Borders region. The tenant has been in occupation since
1980 and remains committed to the property having recently
concluded a major estate transformation plan."
(1) Portfolio passing rent divided by portfolio valuation plus
estimated 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 Imlach / Tel: +44 (0)116 240 8740
Ian Mattioli MBE
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 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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