18 September 2017
Custodian REIT plc
("Custodian REIT" or "the Company")
Disposal of Properties
Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the disposal of three properties from its portfolio.
The Company has sold an 8,326 sq ft retail unit within a six unit block on High Street, Colchester for £4.25 million, £0.7 million ahead of the 30 June 2017 valuation. The unit was recently let to and refurbished by Metro Bank plc on a lease expiring in 2041 and its sale crystallises the value created by agreeing the new lease.
The Company has sold a 9,332 sq ft multi-tenanted retail parade on High Street, Redcar for £0.6 million, £0.1 million ahead of the 30 June 2017 valuation. This property was part of the initial portfolio acquired on the Company's admission to the London Stock Exchange in 2014 ("the IPO Portfolio") but the property was considered sub-scale within the portfolio and following an asset management program, the opportunity to sell at a price in excess of valuation was created.
The Company has sold a 15,330 sq ft multi-tenanted industrial estate on Brindley Road, Hinckley for £1.2 million, £0.2 million ahead of the 30 June 2017 valuation. This property was also acquired as part of the IPO Portfolio. Over the last two years rents have increased and all units have been let, securing a profit on exit.
The Company intends to use the proceeds from the disposals to fund acquisitions better aligned to its long term investment strategy.
Commenting on the disposals, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's external fund manager), said:
"These disposals demonstrate our ongoing commitment to portfolio management, representing three examples of good asset management activities leading to the crystallisation of strong valuation gains. We intend to redeploy the sale proceeds on property with better income growth and capital growth potential."
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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
Nathan Brown / Hugh Jonathan
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 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 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.