Source - EQS

Custodian REIT plc (CREI)
Custodian REIT plc : Purchase of Property

10-Apr-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.


 

 

10 April 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 53,198 sq ft distribution unit within Bellshill Industrial Estate, Bellshill located 10 miles east of Glasgow with access to junction 7 of the M8 and junction 5 of the M74.  Nearby occupiers include Screwfix, DHL, Scania and TNT.

 

The unit is let to Yodel Delivery Network Limited on a lease expiring on 1 August 2025 with current passing rent of £275,000 reflecting a net initial yield1 of 6.94%.

 

The agreed purchase price of £3.72 million was funded from the Company's existing debt facilities, resulting in net gearing2 increasing to 21.8% 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 purpose-built parcel delivery depot on one of Scotland's prime distribution parks, let to a market leading operator.  The tenant has recently carried out significant works on the property, demonstrating its commitment to the location, and we expect to crystallise rental growth at the next review."

 

1 Passing rent divided by purchase price 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 Imlach / Ian Mattioli MBE

Tel: +44 (0)116 240 8740

 

www.custodiancapital.com

 

 

Numis Securities Limited

 

Hugh Jonathan/Nathan Brown

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 principally 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.

 

 

 



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.: 5376

 
End of Announcement EQS News Service

672659  10-Apr-2018 

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