Purchase of Property
5 October 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 the 51,956 sq ft Wellington Road Retail Park in Burton upon Trent, adjacent to the busy A38. The site comprises three units let to Wickes, The Range and HSS Hire and has 208 parking spaces. Nearby retailers include B&Q and Burger King.
The units' leases expire on 28 September 2028, 30 October 2031 and 29 September 2018 respectively, with a total passing rent of £580,681 per annum reflecting a net initial yield1 of 6.45%.
The agreed purchase price of £8.45 million was funded from the Company's existing debt facilities, resulting in net gearing2 increasing to 20.2% 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 prominently located retail park within Burton's main out of town retail pitch. 35% of the property's rent is subject to fixed uplifts and its weighted average unexpired lease term of over 11 years adds secure income to the portfolio. The HSS unit, which represents 7% of the asset's aggregate rent, is unoccupied and provides an excellent opportunity to drive additional value by developing that part of the site."
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
Nathan Brown / Hugh Jonathan
Tel: +44 (0)20 7260 1000
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Tel: +44 (0)20 3757 4984
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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.
This information is provided by RNS
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