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CUSTODIAN REIT PLC Custodian REIT plc : Purchase of Property

Directive transparence : information réglementée

03/09/2021 08:00

Custodian REIT plc (CREI)
Custodian REIT plc : Purchase of Property

03-Sep-2021 / 07:00 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.


 

 

3 September 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 a 20,012 sq ft office building on Fountain Street, Manchester which is a short walk from Piccadilly Gardens and Oxford Road station.  Other local occupiers include Savills, Sixteen Real Estate, Chartered Wealth Management and Royal & Sun Alliance Insurance.

 

The property comprises basement parking and six floors let to Leyton UK, Meridian Healthcomms, Venditan and Fourthline with a weighted average unexpired lease term to first break or expiry ("WAULT") of 1.2 years and an aggregate rent of £406,704 per annum, reflecting a net initial yield[1] of 6.10%.

 

The agreed purchase price of £6.25 million was funded from the Company's existing debt facilities, resulting in net gearing[2] increasing to 25.2% 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 high quality office building in a proven central Manchester location, which continues the pre-emptive deployment of proceeds from the sale of a portfolio of industrial properties due to complete later this month.  The short WAULT provides potential asset management opportunities to enhance value and increase passing rent."

 

1 Aggregate rent, which includes rental guarantees, 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:

 

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

     

 

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.

 

 


 

 



ISIN: GB00BJFLFT45
Category Code: ACQ
TIDM: CREI
LEI Code: 2138001BOD1J5XK1CX76
Sequence No.: 121372
EQS News ID: 1230988

 
End of Announcement EQS News Service

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