Custodian REIT PLC Purchase of Property (0340Q)
07 September 2017 - 4:00PM
UK Regulatory
TIDMCREI
RNS Number : 0340Q
Custodian REIT PLC
07 September 2017
7 September 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 35,000 sq ft retail warehouse on
Transit Way Retail Park, Plymouth, near the A38 Devon Expressway.
The site comprises two units occupied by Magnet and B&M, with
nearby retailers including Argos, Tesco, Lidl and Matalan.
The units' leases expire on 26 January 2027 and 20 August 2027
respectively with a total passing rent of GBP400,000 per annum,
reflecting a net initial yield(1) of 6.79%.
The agreed purchase price of GBP5.525 million was funded from
the Company's existing cash resources, resulting in net gearing(2)
increasing to 21.1% 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 secured this prominently located
property within an established Plymouth out of town retail park.
Magnet and B&M are strong nationally established tenants which
add to Custodian REIT's retail warehouse portfolio. Magnet has been
in occupation since the property was constructed and a recent
comprehensive refurbishment, which split the property into two
smaller units, has made it very attractive in the modern retail
environment."
(1) Passing rent divided by purchase price plus assumed
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 Tel: +44 (0)116 240
Imlach / 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 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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