Custodian REIT plc (CREI)
25 October 2021
Custodian REIT plc
("Custodian REIT" or the "Company")
Disposal of Property
Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the disposal of a property from its portfolio.
The Company has sold a 42,289 sq ft car showroom in Stockport for £9.0 million, £1.4 million (18%) ahead of the 30 June 2021 valuation, representing a net initial yield1 of 6.7%.
The property is let to Williams BMW and Mini and was purchased in July 2017 for £8.8 million. Following the disposal, net gearing2 has decreased to 19.5%.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's external fund manager), said:
"This asset has provided a healthy level of income over our four years of ownership, during which we completed the asset management initiatives identified on acquisition of re-basing the rent and transferring the lease to a much stronger group covenant."
1 Passing rent divided by sale price plus estimated purchasers' costs.
2 Gross borrowings less cash (excluding rent deposits and retentions) divided by last published property portfolio valuation.
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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 principally 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.
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