Custodian REIT plc : Purchase of Property (753957)
04 December 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
04-Dec-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 December 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 44,844 sq ft Jubilee Close Retail Park in
Weymouth, comprising three units occupied by B&Q, Halfords and Sports Direct
with nearby retailers including Currys, KFC and Matalan.
The units' have a weighted average unexpired lease term to first break or
expiry of 7.8 years. Current aggregate passing rent is GBP803,000, reflecting
a net initial yield1 of 6.97%.
The agreed purchase price of GBP10.8 million was funded from the Company's
existing debt resources, resulting in net gearing2 increasing to 25.5% loan
to value.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of
Custodian Capital Limited (the Company's discretionary investment manager),
said:
"Despite the investment market's aversion to the retail sector, we believe
that these occupiers will continue to prosper despite challenges from
on-line sales and with nearly 8 years contractual income, strong trading
performances and a 7% initial yield, this property meets our investment
criteria.
"We believe well located retail warehouse properties which either do not
compete with on-line retailing or are complementary, through offering easy
click and collect services, will remain in demand despite the current
restructuring of the retail market."
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].
ISIN: GB00BJFLFT45
Category Code: MSCH
TIDM: CREI
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 6740
EQS News ID: 753957
End of Announcement EQS News Service
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c24dec6d0ea6c746569ddd52de0eca8d&application_id=753957&site_id=vwd_london&application_name=news
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=44eae66ce326b2005a19503bbab5faed&application_id=753957&site_id=vwd_london&application_name=news
(END) Dow Jones Newswires
December 04, 2018 02:01 ET (07:01 GMT)
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