Custodian Property Income REIT plc: Update on the Strategic Acquisition of Scorpion Properties
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Custodian Property Income REIT plc (CREI)
15 June 2026
Custodian Property Income REIT plc
(“Custodian Property Income REIT” or “the Company”)
Update on the Strategic Acquisition of Scorpion Properties
Custodian Property Income REIT (LSE: CREI), which seeks to deliver an enhanced income return by investing in a diversified portfolio of smaller, regional properties with strong income characteristics across the UK, provides an update on its purchase of a £8.5m privately-owned portfolio (the “Scorpion Portfolio”) which was achieved through the majority-share acquisition of Scorpion Properties Limited (“Scorpion”) (the “Transaction”) announced on 3 March 2026.
Since completion of the Transaction, the Scorpion Portfolio has performed in line with expectations with occupancy remaining at 100% with the 31 March 2026 valuation 3.6% ahead of the purchase price. During June 2026, the Company sold the Scorpion Portfolio’s Coventry asset as it was considered non-core due to its size. Sales proceeds were £0.4m, in line with valuation, and £0.1m ahead of the allocated purchase price.
Commenting on the Transaction, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited, the Company’s Investment Manager, said: “Scorpion provided the Company with another opportunity to scale the business, via the acquisition of a highly complementary portfolio of industrial assets within the UK’s ‘Golden Triangle’ for logistics. The remaining four properties offer significant potential for value creation through capturing latent rental growth at upcoming lease events. While we have been clear in our ambition to continue growing the business, we are also extremely committed to generating shareholder value through disciplined consolidation to drive future earnings. Importantly, we are pleased to note that the Scorpion Portfolio’s 31 March 2026 valuation was 3.6% ahead of the purchase price, demonstrating the accretive nature of the Transaction.
“In a short space of time, our innovative strategy of achieving growth by utilising our REIT status to acquire privately held portfolios through corporate acquisitions has proved an effective way to achieve scale alongside earnings enhancement. We will continue to pursue further opportunities with family property companies which are facing similar succession and tax issues in the UK.”
Transaction consideration and issue of equity On completion of the Transaction on 2 March 2026, the Company issued 4,942,650 new ordinary shares as initial consideration, with an expected c.0.3m further new ordinary shares to be issued on finalisation of completion accounts.
Today, the Company announces the finalisation of completion accounts in relation to the Transaction and the associated issuance of 314,370 new ordinary shares (the “New Shares”) to be admitted to the premium segment of the Official List and to trading on the London Stock Exchange's Main Market for listed securities ("Admission"). It is expected that Admission will become effective and dealings in the New Shares will commence at 8am on 18 June 2026. The New Shares will rank pari passu with the ordinary shares already in issue.
The total number of voting rights of the Company following Admission of the New Shares (excluding treasury shares) is 489,067,079, and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or of a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.
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Further information:
Further information regarding the Company can be found at the Company's website custodianreit.com or please contact:
Notes to Editors
Custodian Property Income 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 throughout the UK and is principally characterised by smaller, regional, core/core-plus properties.
The Company offers investors the opportunity to access a diversified portfolio of UK commercial real estate through a closed-ended fund. By principally targeting smaller, regional, core/core-plus properties, the Company seeks 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 custodianreit.com and custodiancapital.com. Dissemination of a Regulatory Announcement that contains inside information in accordance with the Market Abuse Regulation (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. View original content: EQS News |
| ISIN: | GB00BJFLFT45 |
| Category Code: | MSCL |
| TIDM: | CREI |
| LEI Code: | 2138001BOD1J5XK1CX76 |
| Sequence No.: | 431490 |
| EQS News ID: | 2345426 |
| End of Announcement | EQS News Service |
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