Purchase of Property

RNS Number : 0754M
Custodian REIT PLC
26 July 2017
 

 

 

26 July 2017

 

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 30,404 sq ft retail warehouse on Snipe Retail Park, Ashton-under-Lyne, adjacent to junction 23 of the M60.  The unit is occupied by B&M Bargains Limited, with nearby retailers including B&Q, Halfords, Home Bargains, Dunelm, Argos and Harveys.

 

The unit's lease expires on 8 January 2032 with a current passing rent of £421,330 per annum, reflecting a net initial yield of 6.00%.

 

The agreed purchase price of £6.6 million was funded from the Company's existing cash resources, resulting in net gearing2 increasing to 20.8% loan to value.

 

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

 

"We are delighted to have secured this prominently located property within the Snipe Retail Park, a well established Manchester out of town retail park.  B&M is a strong nationally established tenant which dominates its sub-market.  The unit has recently undergone a comprehensive refurbishment with B&M agreeing to a long-term lease with a 14.5 years unexpired term, demonstrating its commitment to the unit and location."

 

1 Passing rent divided by purchase price plus assumed 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 Imlach / Ian Mattioli MBE

Tel: +44 (0)116 240 8740


www.custodiancapital.com

 

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 characterised by properties with individual values of less than £10 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 £10 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 and www.custodiancapital.com.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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