Source - RNS
RNS Number : 5170L
Custodian REIT PLC
04 October 2016
 

 

 

4 October 2016

 

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 36,168 sq ft retail warehouse in Leighton Buzzard, located 10 miles from junction 12 of the M1.  Nearby occupiers include Tesco, Aldi and Waitrose.

 

The property is let to Homebase Limited on a lease expiring on 22 December 2023 with a current passing rent of £524,436 per annum, reflecting a net initial yield of 6.91%.

 

The agreed purchase price of £7.12 million was funded from the Company's existing debt facilities, resulting in net gearing1 increasing to 21.7% 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 secured this property let to a well-known retailer on a long-term lease.  The property is centrally located in Leighton Buzzard adjacent to a Tesco supermarket.  The town is experiencing significant growth with 1,330 dwellings currently under construction in the area and a further 2,500 proposed in the next 10 years, which is very positive for retail and commercial growth in the town."

 

1 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 Imlach / Ian Mattioli

Tel: +44 (0)116 240 8740


www.custodiancapital.com

 

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 small lot sizes, with individual property values of less than £10 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 smaller lot size 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 and www.custodiancapital.com.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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