24 November 2017
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 high street retail unit in Worcester let to Superdrug Stores plc. The property comprises a ground floor sales unit with upper floor ancillary accommodation, located in the prime retail pitch of High Street. Nearby shops include Boots, Marks & Spencer, Debenhams, TK Maxx, and Paperchase.
The tenant's lease expires on 24 March 2027 with a current passing rent of £384,270 per annum, reflecting a net initial yield of 6.50%.
The agreed purchase price of £5.54m was funded from the Company's existing cash resources, resulting in net gearing increasing to 20.4% loan to value.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's discretionary investment manager), said:
"Prime retail in strong city centre locations can show good value in the current market. Worcester city centre offers the dominant retail in an affluent catchment area and Superdrug appear committed to the location. The unexpired lease term of over nine years adds secure income to the portfolio and the upper floors, though currently demised to the tenant, provide an opportunity to drive additional future value."
1 Passing rent divided by valuation plus assumed purchasers' costs.
2 Gross borrowings less unrestricted cash divided by last published property portfolio valuation.
For further information, please contact:
Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach / Ian Mattioli MBE
Tel: +44 (0)116 240 8740
Numis Securities Limited
Hugh Jonathan / Nathan Brown
Tel: +44 (0)20 7260 1000
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 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.