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Custodian REIT plc : Purchase of Land with Pre-let Development

Custodian REIT plc (CREI)
Custodian REIT plc : Purchase of Land with Pre-let Development

29-Jul-2020 / 10:28 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.


 

 

29 July 2020

 

 

Custodian REIT plc

 

("Custodian REIT" or "the Company")

 

Purchase of Land with Pre-let Development

 

Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the completion of a forward funding agreement for a pre-let development, together with the purchase of the development land. 

 

The Company has acquired 0.6 acres of land in Nottingham, adjacent to the Castle Marina Shopping Park and near to the recently developed NG2 Business Park on the busy A453 Queens Drive, the main arterial route into Nottingham city centre from the South.

 

The development will comprise a 2,163 sq ft drive-through coffee shop with 34 parking spaces and construction is being phased over an expected six month build period. 

 

The unit, to be developed by Portal Nottingham Limited, has been pre-let to KBeverage Limited (trading as Starbucks Coffee) on a 20 year lease, without break, with five yearly upward only market rent reviews.  On completion of the development for a total consideration of £1.725 million, the total passing rent will be £115,000 per annum reflecting a net initial yield[1] of 6.67%.

 

The land purchase price of £0.9 million was funded from the Company's existing cash resources, resulting in net gearing2 increasing to 22.3% loan to value.

 

Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's discretionary investment manager), said:

 

"Demand for drive-through stores continues to show growth, especially in the hot beverage market, and is proving resilient in the face of the COVID-19 pandemic.  The location of this property on an arterial access route for Nottingham city centre allows easy accessibility for traffic both entering and leaving the City, enhancing the site's offering."

 

1 Passing rent divided by valuation plus estimated purchaser's costs.

2 Gross borrowings less unrestricted cash divided by last published property portfolio valuation.

 

-Ends-

 

For further information, please contact:

 

Custodian Capital Limited

 

Richard Shepherd-Cross / Nathan Imlach / Ian Mattioli MBE

Tel: +44 (0)116 240 8740

 

www.custodiancapital.com

 

Numis Securities Limited

 

Nathan Brown / Hugh Jonathan

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 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.


 



ISIN: GB00BJFLFT45
Category Code: MSCU
TIDM: CREI
LEI Code: 2138001BOD1J5XK1CX76
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.: 78813
EQS News ID: 1105207

 
End of Announcement EQS News Service

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Market Cap: £370.91 m
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