Purchase of Property

RNS Number : 0105I

Custodian REIT PLC

27 May 2014

 

27 May 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 its second property purchase following its initial placing and admission to the Official List on 26 March 2014. 

The Company has acquired a well-established Toyota car dealership on Mallory Road, Peterborough.  The property comprises a 25,724 sq ft showroom and workshop on a 1.62 acre site.  The property is located on a busy motor park, close to the city centre where other motor dealerships include franchisees of Jaguar, Land Rover, Volvo, Suzuki, Peugeot, Vauxhall and Honda.

The property is let to Marshall Motor Group Limited with an unexpired lease term of 5 years.  The property is let at a passing rent of £225,500 per annum, reflecting a net initial yield of 8.5%.  The purchase consideration of £2.5 million was funded from the Company's own cash resources. 

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

"This acquisition further strengthens the tenant mix of the portfolio, bringing sector diversification and enhancing income to support the target return."

-Ends-

For further information, please contact:

Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach	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

 

 

MSCPGUMAAUPCPUQ