Custodian REIT plc : Results of Annual General Meeting - Additional Statement (714809)
16 August 2018 - 6:47PM
UK Regulatory
Dow Jones received a payment from EQS/DGAP to publish this press
release.
Custodian REIT plc (CREI)
Custodian REIT plc : Results of Annual General Meeting - Additional
Statement
16-Aug-2018 / 09:45 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.
16 August 2018
Custodian REIT plc
("Custodian REIT" or "the Company")
Results of Annual General Meeting - Additional Statement
Custodian REIT (LSE: CREI), the UK commercial real estate investment
company, announces its response to the results of the Annual General Meeting
("AGM") of the Company held on 19 July 2018, at which Resolution 11 to
dis-apply pre-emption rights in relation to up to 10% of the Company's
issued share capital ("ISC") was passed, but Resolution 12 to further
dis-apply pre-emption rights in relation to an additional 10% of the
Company's ISC did not receive the required 75% of votes cast in favour.
This resolution was tabled to take advantage of the changes to the
Prospectus Directive that were effective from 20 July 2017, increasing the
limit on new equity that can be issued over a 12-month period on a
non-pre-emptive basis before the Company is required to publish a prospectus
("Limit") from 10% to 20% of the Company's ISC.
The Pre-Emption Group's Statement of Principles on Disapplying Pre-emption
Rights, however, continues to support a Limit of 10%. Accordingly, 26.0m
votes against Resolution 12 were received (representing 47.4% of votes cast
and 7.4% of eligible votes), largely from shareholders following
Institutional Voting Information Service recommendations, based on the
Pre-emption Group's guidance.
At the Company's AGM on 20 July 2017, shareholders voted in favour of
dis-applying pre-emption rights in relation to up to 20% of the Company's
ISC.
In the Board's opinion, having the authority to issue up to 20% of the
Company's ISC on a non-pre-emptive basis, in line with the revised Limit
implemented by the European Securities and Markets Authority, is justified
to continue the Company's programme of tap issuance, which allows the
Company to grow in a cost-efficient manner by avoiding the significant costs
of publishing a prospectus and satisfies demand for the Company's shares.
The Board believes that growing the Company is in the best interests of all
Shareholders as it reduces the Company's fixed costs per Ordinary Share and
should increase the secondary market liquidity in its Ordinary Shares. New
Ordinary Shares will only be issued to new and existing Shareholders at a
sufficient premium to net asset value ("NAV") at the point of issue to at
least cover the issue costs of the new Ordinary Shares and will therefore be
accretive to the prevailing NAV for existing Shareholders. Whilst existing
Shareholders' voting rights will be diluted, the Directors believe this
consideration is outweighed by the flexibility that a larger authority
provides and the cost savings associated with not needing to issue
subsequent circulars to obtain further authority. The Directors would use
this authority only when they consider it to be in the best interests of
Shareholders to fund suitable property acquisitions.
Due to the votes against Resolution 12 only representing 7.4% of eligible
votes and based on feedback from Shareholders since the 2018 AGM, the Board
currently expects to request approval to dis-apply pre-emption rights in
relation to up to 20% of the Company's ISC at the 2019 AGM.
- 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: AGM
TIDM: CREI
OAM Categories: 2.2. Inside information
3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 5884
EQS News ID: 714809
End of Announcement EQS News Service
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c24dec6d0ea6c746569ddd52de0eca8d&application_id=714809&site_id=vwd_london&application_name=news
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=44eae66ce326b2005a19503bbab5faed&application_id=714809&site_id=vwd_london&application_name=news
(END) Dow Jones Newswires
August 16, 2018 04:47 ET (08:47 GMT)
Custodian Property Incom... (LSE:CREI)
Historical Stock Chart
From Apr 2024 to May 2024
Custodian Property Incom... (LSE:CREI)
Historical Stock Chart
From May 2023 to May 2024