Last checked at 
17 Aug 2016 07:00
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17 August 2016
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 44,606 sq ft of retail warehousing on County Road Retail Park, Swindon, near the town centre and railway station and within five miles of the M4. The site comprises two units let to Go Outdoors Limited and B & M Bargains Limited, with nearby occupiers including Tesco, Wickes, Lidl and T K Maxx.
The units' leases expire on 26 May 2021 and 8 February 2025 respectively with a total passing rent of £525,000 per annum, reflecting a net initial yield of 6.86%.
The agreed purchase price of £7.18 million was funded from the Company's existing cash resources, resulting in net gearing1 increasing to 15.1% 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 prominent property adjacent to Tesco Extra and located in Swindon's highest density catchment area. B&M Bargains and Go Outdoors are both occupiers who are dominating their sub-markets and with a weighted average unexpired lease term of 7.5 years and unrestricted open A1 planning consent (including food) the units provide long-term income and flexibility regarding future use."
1 Gross borrowings less unrestricted cash divided by property portfolio valuation.
-Ends-
For further information, please contact:
Custodian Capital Limited | |
Richard Shepherd-Cross / Nathan Imlach / Ian Mattioli | 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 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.