CUSTODIAN REIT PLC Custodian REIT plc : Purchase of Property
Transparency directive : regulatory news
|
Custodian REIT plc (CREI)
19 August 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 property purchase.
The Company has acquired a 29,676 sq ft industrial unit on Wester Gourdie Industrial Estate, Dundee, adjacent to the A90. The unit is occupied by Menzies Distribution Limited with an unexpired term to first break or expiry of 5.2 years.
The unit has a passing rent of £117,500 per annum, reflecting a net initial yield1 of 5.89%.
The agreed purchase price of £1.9 million was funded from the Company's existing debt facilities, resulting in net gearing2 increasing to 23.7% 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 located industrial distribution asset, let to a strong and expanding tenant that we know well. The area displays strong evidence of increasing industrial rents, offering short-medium term asset management opportunities."
1 Passing rent divided by purchase price plus assumed purchasers' costs. 2 Gross borrowings less unrestricted cash divided by last published property portfolio valuation.
-Ends-
For further information, please contact:
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 |
| OAM Categories: | 2.2. Inside information |
| Sequence No.: | 120314 |
| EQS News ID: | 1227490 |
| End of Announcement | EQS News Service |
|
|