Cust Prop Inc Regulatory News (CREI)

20 May 2022

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 two retail units on Winchester High Street covering an aggregate 5,228 sq ft let to Nationwide Building Society and Hobbs. Nearby occupiers include Marks & Spencer, Boots, Halifax Bank and Superdrug.

The tenants’ leases expire in April 2028 and December 2031 respectively at an aggregate current passing rent of £249,200 per annum, reflecting a net initial yield[1] of 6.41%.

The agreed purchase price of £3.65 million was funded from the Company’s existing debt facilities, resulting in net gearing2 increasing to 20.5% loan to value.

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

“Winchester is one of the UK’s most vibrant shopping locations3. We are delighted to have secured this property on Winchester‘s city centre’s prime retail pitch which remains a sought after location with occupation levels well above average. We have recently seen prime high street retail rents improving for the first time in over four years and we feel this asset is a positive addition to our diversified portfolio at an attractive yield, well above Winchester’s historical average.”

1 Passing rent divided by purchase price plus assumed purchasers’ costs.

2 Gross borrowings less cash (excluding tenant rental deposits and retentions) divided by last published property portfolio valuation.

3 Source: Retail-week.com

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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.