logo-loader
viewCustodian REIT

Custodian bags £25mln property in leaseback deal

The UK property investor has a new largest tenant for its property portfolio, which stood at £568mln in June

Custodian REIT -

UK property investor Custodian REIT PLC (LON:CREI) has broadened its portfolio with the acquisition of eight properties from Menzies Distribution Limited (MDL) for £24.7mln.

MDL will become the REIT’s largest tenant through the sale-and-leaseback deal.

READ: Custodian REIT sells Edinburgh property in search for better prospects

The eight 'last mile' distribution properties have a passing rent of £1.61mln and are being leased back to MDL for 10 years.

Richard Shepherd-Cross, the portfolio manager, said the leaseback gave the property group a “strong tenant covenant” representing 3.9% of the rent roll.

Custodian specialises in smaller property units and Shepherd-Cross said the acquisition will help to regionally diversify Custodian’s portfolio and provide secure cash flow with the certainty of rent hikes in 2024.

Quick facts: Custodian REIT

Price: 115.2 GBX

LSE:CREI
Market: LSE
Market Cap: £474.11 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Custodian REIT named herein, including the promotion by the Company of Custodian REIT in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Proactive Research analyst discusses Custodian REIT's refinancing and...

Proactive Research analyst Ed Stacey says Custodian REIT (LON:CREI) is continuing to pursue its strategy of low-churn buy-and-hold rental income. In October 2019, Custodian announced the acquisition of a portfolio of eight distribution warehouses under a sale and leaseback deal with Menzies...

on 9/10/19

2 min read