Custodian REIT plc : Purchase of Property (691753)
04 June 2018 - 4:00PM
UK Regulatory
Dow Jones received a payment from EQS/DGAP to publish this press
release.
Custodian REIT plc (CREI)
Custodian REIT plc : Purchase of Property
04-Jun-2018 / 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.
4 June 2018
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 77,242 sq ft health and fitness centre in
Lincoln, prominently located on the A46 within a leading mixed use,
out-of-town scheme with businesses in the immediate vicinity including Ibis
Hotel, Fayre & Square and Frankie & Benny's.
The unit is let to Total Fitness Health Clubs Limited on a lease expiring on
22 June 2040, subject to a tenant-only break on 22 June 2035. Current
passing rent is GBP350,000 per annum reflecting a net initial yield1 of 7.64%.
The agreed purchase price of GBP4.3 million was funded from the Company's
existing debt resources, resulting in net gearing2 increasing to 22.4% 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 acquired this high specification, purpose-built
health and fitness centre in an established and prominent location with an
unexpired lease term to first break of 17 years. The tenant has recently
undertaken an extensive internal refurbishment, highlighting its confidence
in the continued performance of the location."
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 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 with a portfolio
comprising properties predominantly let to institutional grade tenants
throughout the UK, principally characterised by properties with individual
values of less than GBP10m at acquisition.
The Company offers investors the opportunity to access a diversified
portfolio of UK commercial real estate through a closed-ended fund. By
principally targeting sub GBP10m lot size regional properties, the Company
intends to provide investors with an attractive level of income and the
potential for capital growth, becoming the REIT of choice for private and
institutional investors seeking high and stable dividends from
well-diversified UK real estate.
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: MSCH
TIDM: CREI
Sequence No.: 5612
EQS News ID: 691753
End of Announcement EQS News Service
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2: http://public-cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=44eae66ce326b2005a19503bbab5faed&application_id=691753&site_id=vwd_london&application_name=news
(END) Dow Jones Newswires
June 04, 2018 02:00 ET (06:00 GMT)
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