19 December 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 24,845 sq ft car dealership on Pride Park business park in Derby, two miles from the city centre and prominently located on the busy A6. Nearby occupiers include Rolls Royce, Volkswagen, Lexus, Mercedes-Benz, Land Rover, and Ford.
The property is let to VW Group UK Limited and sub-let to Goodman Retail Limited (trading as Sytner) on a lease expiring on 23 November 2025 with a current passing rent of £342,500 per annum, reflecting a net initial yield1 of 6.28%.
The agreed purchase price of £5.115 million was funded from the Company's existing cash resources, resulting in net gearing2 increasing to 19.4% 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 well-established property within Derby's prime motor retail pitch, let to one of the UK's largest motor retailers on a long-term lease. The tenant has recently undertaken significant refurbishment works at the property, including an extension to the showroom floorplate, which demonstrates its commitment to the site."
1 Passing rent divided by valuation plus estimated 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
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.
For more information visit www.custodianreit.com and www.custodiancapital.com.