Custodian REIT plc : Purchase of Property (758609)
December 17 2018 - 2:01AM
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
17-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.
17 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 a 14,926 sq ft Volkswagen car dealership, situated
prominently on Belton Road, the prime dealership, trade and retail warehouse
location in Loughborough, one mile from the town centre and three miles from
junction 23 of the M1. Car dealerships in the vicinity include Peugeot,
Toyota, Nissan, Inchcape Mercedes-Benz, Vauxhall and Kia.
The property is let to Lister Group Limited on a lease expiring on 30
November 2038, subject to a break in 2028, with a current passing rent of
GBP160,000 per annum, reflecting a net initial yield1 of 6.37%. The lease
benefits from rent reviews linked to RPI, subject to a cap of 3.0% per annum
rental growth.
The agreed purchase price of GBP2.36 million was funded from the Company's
existing debt resources, resulting in net gearing2 increasing to 25.7% loan
to value.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of
Custodian Capital Limited (the Company's discretionary investment manager),
said:
"This opportunity in Loughborough's prime motor trade pitch, let to a strong
tenant, on a long-term lease, including RPI linked rent increases, provides
income security and a strong reversionary yield. We believe the property's
prime location and low passing rent will provide the long-term opportunity
that meets the investment criteria of Custodian REIT."
1 Passing rent divided by 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 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: MSCH
TIDM: CREI
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 6902
EQS News ID: 758609
End of Announcement EQS News Service
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c24dec6d0ea6c746569ddd52de0eca8d&application_id=758609&site_id=vwd_london&application_name=news
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=44eae66ce326b2005a19503bbab5faed&application_id=758609&site_id=vwd_london&application_name=news
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December 17, 2018 02:01 ET (07:01 GMT)
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