Purchase of Property
22 December 2017 - 6:04PM
UK Regulatory
Dow Jones received a payment from EQS/DGAP to publish this press
release.
Custodian REIT plc (CREI)
Purchase of Property
22-Dec-2017 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
22 December 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 purchase of property.
The Company has acquired St Nicholas Gate Retail Park in Carlisle,
comprising six retail warehouse units totalling 73,690 sq ft with a 434
parking spaces and the reversionary interest in a 34,750 sq ft Asda
supermarket. The park is within a mile of the city centre and two miles from
the M6, prominently positioned on the busy A6, with occupiers including
Asda, Halfords, Oak Furniture Land, Iceland, B&M and Poundland. Nearby
retailers include B&Q, Pets at Home, Laura Ashley and Matalan.
The properties have a weighted average unexpired lease term to first break
or expiry of 8.4 years and total passing rent of GBP889,718 per annum,
reflecting a net initial yield1 of 6.89%.
The agreed aggregate purchase price of GBP12.1 million was funded from the
Company's existing cash resources, resulting in net gearing2 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 pleased to have acquired these properties in one of Carlisle's
dominant out-of-town retail locations. The acquisition includes the freehold
interest in an Asda supermarket which reverts to the Company in 2038. We
expect to witness strong valuation growth in this interest as the headlease
shortens. Planning permission has been obtained for two additional units
which could drive further valuation growth."
1 Portfolio passing rent divided by portfolio valuation plus estimated
purchaser's 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 8740
Imlach / Ian Mattioli MBE
www.custodiancapital.com [1]
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 principally 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 [2] and
www.custodiancapital.com [1].
ISIN: GB00BJFLFT45
Category Code: MSCM
TIDM: CREI
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 5044
End of Announcement EQS News Service
641335 22-Dec-2017
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December 22, 2017 02:04 ET (07:04 GMT)
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