CUSTODIAN PROPERTY INCOME REIT PLC 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.
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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 GBP406,704 per annum, reflecting a net initial yield[1] of 6.10%.
The agreed purchase price of GBP6.25 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 GBP10 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.
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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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September 03, 2021 02:00 ET (06:00 GMT)
