Purchase of Property

RNS Number : 0782M

Custodian REIT PLC

11 July 2014

 



11 July 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 a further property purchase, bringing the total funds invested following its initial placing and admission to the Official List on 26 March 2014 to £17.35 million. 

The Company has acquired a brand new 12,940 sq ft trade counter unit on Willowbridge Lane, Castleford.  Willowbridge Lane (A655) is the main arterial route into Castleford from Junction 31 of the M62 motorway, half a mile to the south. 

The property is operated as a builder's merchant and is let to MKM Building Supplies Limited on a 20 year lease, without break, expiring on the 7 January 2034.  The lease provides for five yearly rent reviews, with rental increases linked to the retail prices index (RPI).  The property is let at an initial rent of £110,000 per annum, reflecting a net initial yield of 6.45%.  The purchase consideration of £1.61 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 brings both long term, index-linked income from a purpose built trade counter unit and further portfolio diversification.  The site also promises to be an excellent location for the tenant, where they should benefit from trade business and passing retail customers."

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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. 

 

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