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Custodian REIT plc : Purchase of Property

·3-min read

Custodian REIT plc (CREI)
05-Jan-2021 / 16:30 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.

 

 

5 January 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 further property purchase.

 

The Company has acquired Willow Court, a 22,545 sq ft office building on Minns Business Park, one mile west of Oxford city centre and adjacent to the A34, which connects the M4 and M40.  Other occupants of the business park include Oxford University Innovation, Barclays, Savills, Blake Morgan and Knights LLP.

 

The property comprises four floors let to RBS, Dehns, Charles Stanley, Oxentia and the Smith Institute with a weighted average unexpired lease term to first break or expiry of 4 years and an aggregate rent of £537,496 per annum, reflecting a net initial yield[1] of 6.41%.

 

The agreed purchase price of £7.86 million was funded from the Company's existing debt facilities, resulting in net gearing[2] increasing to 24.4% 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 office building in a proven location with a strong tenant line-up.  Due to local development restrictions office supply in the vicinity has a history of high demand.  The modern and recently refurbished property also has potential asset management opportunities to enhance value and extend its income profile."

 

1 Passing rent divided by valuation plus estimated purchaser's costs.

2 Gross borrowings less cash (excluding tenant rental deposits and retentions) divided by last published property portfolio value.

-Ends-

 

 

For further information, please contact:

 

 

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.

 

 

 

 

 


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

 

Ed Gascoigne-Pees

Tel: +44 (0)20 3757 4984

 

www.camarco.co.uk

 

 

 

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

 

Ed Gascoigne-Pees

Tel: +44 (0)20 3757 4984

 

www.camarco.co.uk

 

 

 

ISIN:

GB00BJFLFT45

Category Code:

MSCU

TIDM:

CREI

LEI Code:

2138001BOD1J5XK1CX76

Sequence No.:

90872

EQS News ID:

1158655


 

End of Announcement

EQS News Service

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