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Custodian REIT plc : Purchase of Property

·2-min read

Custodian REIT plc (CREI)
24-Jun-2021 / 07:00 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.

 

 

24 June 2021

 

 

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 property purchase.

 

The Company has acquired a 9,016 sq ft industrial unit on Knowsley Business Park, Liverpool, following its acquisition of five units on the same park earlier this month.  The unit is occupied by Engineering Solutions and Automations Limited with an unexpired term to first break or expiry of 4.1 years.

 

The unit has a passing rent of £45,000 per annum, reflecting a net initial yield1 of 5.17%.

 

The agreed purchase price of £0.825 million was funded from the Company's existing debt facilities, resulting in net gearing2 increasing to 25.6% 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 another unit at this established industrial location with strong evidence of increasing rents.  We expect this unit's net initial yield to increase above 6% once an outstanding rent review is settled."

 

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 / Ed Moore / Ian Mattioli MBE

Tel: +44 (0)116 240 8740

 

www.custodiancapital.com

 

Numis Securities Limited

 

Hugh Jonathan/Nathan Brown

Tel: +44 (0)20 7260 1000

 

www.numiscorp.com

 

Camarco

 

Julia Tilley

Tel: +44 (0)7815 068 387

 

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 small lot sizes, with individual property 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 smaller lot size 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:

MSCU

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.:

113199

EQS News ID:

1211351


 

End of Announcement

EQS News Service

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