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Custodian REIT plc (CREI)

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Monday 10 September, 2018

Custodian REIT plc

Custodian REIT plc : Purchase of Property

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

10-Sep-2018 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


 

 

10 September 2018

 

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 72,582 sq ft industrial unit on Hilton Business Park, Derby, located one mile from the A50 which connects the M1 and M6.  Nearby occupiers include Amco Logistics and NR Evans Distribution.

 

The unit is let to Daher Aerospace Limited on a lease expiring on 14 September 2031 with a current passing rent of £400,060 per annum reflecting a net initial yield[1] of 6.72%.

 

The agreed purchase price of £5.585 million was funded from the Company's existing debt facilities, resulting in net gearing[2] increasing to 23.3% 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 acquired this modern unit located in the developing logistics and distribution corridor of the A50.  There is significant demand in the Midlands for high quality industrial units with good communication links.  Given the affordable level of passing rent and the increasing cost of development limiting the supply of competing space, we expect this demand to lead to rental growth at the September 2021 rent review."

 

1 Passing rent divided by valuation plus estimated 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 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: MSCH
TIDM: CREI
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.: 5988
EQS News ID: 721813

 
End of Announcement EQS News Service

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