Purchase of Property

RNS Number : 8339K

Custodian REIT PLC

30 June 2014

 

30 June 2014

Custodian REIT plc

("Custodian REIT" or the "Company")

Purchase of Property

Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the completion of two further property purchases following its initial placing and admission to the Official List on 26 March 2014. 

The Company has acquired two modern industrial units on the 100 acre Estuary Commerce Park, Speke, Liverpool.  The modern business park is situated next to Liverpool John Lennon International Airport and occupiers include Lloyds Banking Group, Johnson Controls, National Blood Service, Kier, Shop Direct Group and David Lloyd Leisure. 

Unit C, Estuary Commerce Park is let to Powder Systems Limited ("PSL") on a 20 year lease, expiring on 16 July 2020, at a passing rent of £135,500 per annum.  The building was purpose-built for PSL with expansion space on site, providing a long-term solution as the business grows. 

Unit E, Estuary Commerce Park is let to DHL International (UK) Limited ("DHL") on a 20 year lease, expiring on 9 July 2020, at a passing rent of £119,239 per annum.  DHL has been in occupation since 2000 and elected not to operate its break clause in 2010, showing a commitment to this strategic location. 

The purchase consideration of £3.1 million was funded from the Company's own cash resources and reflected a net initial yield of 7.77%. 

Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's external fund manager), said:

"We believe there is a nationwide shortage in the supply of modern industrial units and, with increasing demand, the prospects for rental growth are very real.  These two property purchases complement the existing portfolio by adding good quality tenants, lease length and income which will support the long-term, stable income return target of the fund." 

-Ends-

For further information, please contact:

Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach / Ian Mattioli	Tel: [phone]
	www.custodiancapital.com

Numis Securities Limited
Nathan Brown / Hugh Jonathan	Tel: [phone]
	www.numiscorp.com

Notes to Editors

Custodian REIT plc is a UK real estate investment trust ("REIT") listed on the London Stock Exchange.  The Company launched on 26 March 2014, acquiring a portfolio of £95 million of UK commercial property.  This was sourced from an existing portfolio of 48 properties held by clients of Mattioli Woods plc in a syndicated structure.  The diverse portfolio consisted of properties let to institutional grade tenants on long leases throughout the UK. 

The Company also raised gross proceeds of £55 million through an initial public offering and will invest in a diversified portfolio of UK commercial properties to achieve its investment objective of providing shareholders with an attractive level of income together with the potential for capital growth. 

The target portfolio is characterised by small lot sizes with individual property values of less than £7.5 million at acquisition. 

Custodian Capital Limited is the discretionary investment manager of the Company. 

For more information visit www.custodianreit.com and www.custodiancapital.com. 

 

END

 

 

ACQPGUAGQUPCPUB