Custodian REIT PLC Disposal of Properties (9444Q)
18 September 2017 - 4:00PM
UK Regulatory
TIDMCREI
RNS Number : 9444Q
Custodian REIT PLC
18 September 2017
18 September 2017
Custodian REIT plc
("Custodian REIT" or "the Company")
Disposal of Properties
Custodian REIT (LSE: CREI), the UK property investment company,
is pleased to announce the disposal of three properties from its
portfolio.
Colchester
The Company has sold an 8,326 sq ft retail unit within a six
unit block on High Street, Colchester for GBP4.25 million, GBP0.7
million ahead of the 30 June 2017 valuation. The unit was recently
let to and refurbished by Metro Bank plc on a lease expiring in
2041 and its sale crystallises the value created by agreeing the
new lease.
Redcar
The Company has sold a 9,332 sq ft multi-tenanted retail parade
on High Street, Redcar for GBP0.6 million, GBP0.1 million ahead of
the 30 June 2017 valuation. This property was part of the initial
portfolio acquired on the Company's admission to the London Stock
Exchange in 2014 ("the IPO Portfolio") but the property was
considered sub-scale within the portfolio and following an asset
management program, the opportunity to sell at a price in excess of
valuation was created.
Phoenix Park
The Company has sold a 15,330 sq ft multi-tenanted industrial
estate on Brindley Road, Hinckley for GBP1.2 million, GBP0.2
million ahead of the 30 June 2017 valuation. This property was also
acquired as part of the IPO Portfolio. Over the last two years
rents have increased and all units have been let, securing a profit
on exit.
The Company intends to use the proceeds from the disposals to
fund acquisitions better aligned to its long term investment
strategy.
Commenting on the disposals, Richard Shepherd-Cross, Managing
Director of Custodian Capital Limited (the Company's external fund
manager), said:
"These disposals demonstrate our ongoing commitment to portfolio
management, representing three examples of good asset management
activities leading to the crystallisation of strong valuation
gains. We intend to redeploy the sale proceeds on property with
better income growth and capital growth potential."
- 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 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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