Custodian REIT plc : Purchase of Property (747315)
19 November 2018 - 6:01PM
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
19-Nov-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.
19 November 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 the 43,000 sq ft Evesham Shopping Park, one mile
from Evesham town centre and two miles from the A46, linking the M5 and M40.
The park comprises a terrace of five units occupied by Next, M&S, Boots,
Argos and Poundstretcher, with nearby retailers including Tesco, and B&M.
The units' have a weighted average unexpired lease term to first break or
expiry of 6.8 years and a price reflecting a net initial yield[1] of 6.04%.
The agreed purchase price of GBP14.2 million was funded from the Company's
existing debt resources, resulting in net gearing[2] increasing to 22.8%
loan to value.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of
Custodian Capital Limited (the Company's discretionary investment manager),
said:
"Both Next and Boots have recently extended their leases at the passing rent
indicating their commitment to the location. B&M Bargains has recently
constructed a 25,000 sq ft unit adjacent to the park, demonstrating that
together with the Tesco Extra opposite this is the prime out of town
location in Evesham. We are pleased to have secured this opportunity to
acquire a very well-let park at a price which reflects a discount to recent
market pricing.
"We believe well located, out-of-town, retail warehouse properties which,
either do not compete with on-line retailing or are complimentary, through
offering easy click and collect services will remain in demand despite the
current restructuring of the retail market. This acquisition presented an
opportunity to buy a prime asset, let to blue chip tenants, at a
sufficiently high yield to support our fully covered dividend."
1 Passing rent divided by valuation 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 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 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].
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ISIN: GB00BJFLFT45
Category Code: ACQ
TIDM: CREI
LEI Code: 2138001BOD1J5XK1CX76
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 6576
EQS News ID: 747315
End of Announcement EQS News Service
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November 19, 2018 02:01 ET (07:01 GMT)
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