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Custodian REIT plc (CREI)

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Friday 28 September, 2018

Custodian REIT plc

Custodian REIT plc : Disposal of Property

Custodian REIT plc (CREI)
Custodian REIT plc : Disposal of Property

28-Sep-2018 / 15:42 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


 

 

28 September 2018

 

Custodian REIT plc

 

("Custodian REIT" or the "Company")

 

Disposal of Property

 

Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the disposal of a property from its portfolio. 

 

The Company has sold a 22,224 sq ft industrial warehouse unit in Southwark for £12.0 million, £4.4 million (58%) ahead of the 30 June 2018 valuation, representing a net initial yield1 of 2.95%.

 

The property was purchased in 2014 for £3.12 million as part of the initial portfolio acquired on the Company's admission to the London Stock Exchange.  The Company intends to use the proceeds from the disposal to fund acquisitions that will enhance dividend cover.

 

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

 

"The lack of available investment stock in Central London combined with strong investment demand and a recent, substantial rental increase has led to significant valuation increases.  Over and above this, redevelopment potential and identification of a special purchaser has delivered a substantial profit over and above the most recent valuation."

 

1 Passing rent divided by sale price plus estimated purchasers' costs.

 

- 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 principally 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.

 

 



ISIN: GB00BJFLFT45
Category Code: DIS
TIDM: CREI
LEI Code: 2138001BOD1J5XK1CX76
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.: 6098
EQS News ID: 728827

 
End of Announcement EQS News Service

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