Purchase of Property

RNS Number : 0850J

Custodian REIT PLC

01 April 2015

 

31 March 2015

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, bringing the total funds invested following its initial placing and admission to the Official List on 26 March 2014 to £107.3 million. 

The Company has acquired a 20,561 sq ft industrial unit on the Clydesmill Industrial Estate, Glasgow at junction 2A of the M74, providing excellent links to the Scottish motorway network. 

The unit is let to Brenntag UK Limited on a lease expiring on 2 April 2021.  Total passing rent is £197,996 per annum, reflecting a net initial yield of 8.75%.

The agreed purchase price of £2.138 million was funded from the Company's existing credit facilities, with net borrowings following the acquisition of 11.4% loan to value.

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

"The unit's location and excellent motorway connections allow Scotland and the North of England to be serviced from this facility. The tenant has invested significantly in the unit to meet its operational requirements giving confidence in the long term intentions for this property". 

-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

Camarco
Ed Gascoigne-Pees	Tel: [phone]
	www.camarco.co.uk

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 raised gross proceeds of £55 million through an initial public offering and has raised a further £47.6 million via two subsequent placings.  It invests 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 through a closed-ended fund. 

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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