Purchase of Property
December 22 2017 - 2:03AM
UK Regulatory
Dow Jones received a payment from EQS/DGAP to publish this press
release.
Custodian REIT plc (CREI)
Purchase of Property
22-Dec-2017 / 07:01 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.
22 December 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 37,804 sq ft retail warehouse in Leicester, near
the Beaumont Shopping Centre and the city's outer ring road with excellent
links to the M1. The unit is occupied by Matalan, with nearby retailers
including Tesco, Argos, Wilko and Superdrug.
The unit's lease expires on 2 October 2028 with a passing rent of GBP502,900
per annum, reflecting a net initial yield1 of 7.36%.
The Company acquired the property by purchasing the entire issued share
capital of BL (Leicester) Limited and its wholly owned subsidiaries,
Belgrave Land (Beaumont Leys) Limited and Belgrave Land (Leicester) Limited,
which respectively hold the long-leasehold interest in the property and its
occupational lease.
The agreed purchase price of GBP6.661 million was funded from the Company's
existing debt resources, resulting in net gearing2 increasing to 22.2% loan
to value.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of
Custodian Capital Limited (the Company's discretionary investment manager),
said:
"Matalan has been trading from this location, adjacent to the 300,000 sq ft
Beaumont Shopping Centre, for many years and we are delighted to have
completed this acquisition. We believe the property will enhance Custodian
REIT's retail warehouse portfolio with a strongly trading business, which
has just invested circa GBP0.5m re-fitting the store."
1 Passing rent divided by purchase price plus purchaser's 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 principally 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: MSCM
TIDM: CREI
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 5045
End of Announcement EQS News Service
641355 22-Dec-2017
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December 22, 2017 02:03 ET (07:03 GMT)
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