Custodian REIT PLC Purchase of Property (4160M)
July 28 2017 - 4:00AM
UK Regulatory
TIDMCREI
RNS Number : 4160M
Custodian REIT PLC
28 July 2017
28 July 2017
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 24,230 sq ft health and fitness
centre in Salisbury, located less than two miles from the city
centre and prominently fronting on to the A30, the main arterial
road into the city from the North. Adjacent businesses include
Premier Inn, Handelsbanken, Busy Bees nursery and a BMW/Mini
dealership.
The unit is let to Parkwood Health & Fitness Limited on a
lease expiring on 2 March 2031, with current passing rent of
GBP200,000 per annum reflecting a net initial yield(1) of
6.75%.
The agreed purchase price of GBP2.785 million was funded from
the Company's existing cash resources, resulting in net gearing(2)
increasing to 20.5% 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 acquired this high specification,
purpose-built health and fitness centre in an established and
prominent location with 14 years remaining on the lease. This
property adds further diversification to the portfolio by
increasing exposure to the alternative sector, and its prominent
position lends itself to alternative uses in the event of a future
vacancy."
(1) Portfolio passing rent divided by portfolio valuation plus
estimated 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
Imlach / Ian Mattioli MBE 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 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 and
www.custodiancapital.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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