Last checked at 
10 Oct 2016 07:00
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10 October 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 a 36,023 sq ft distribution unit on Cambridge Road Industrial Estate, Bedford, located 11 miles from junction 13 of the M1 and eight miles from the A1. Nearby occupiers include ASDA, Sainsbury's, Argos, DHL and Fujifilm.
The unit is let to Heywood Williams Components Limited on a lease expiring on 7 April 2022. Current passing rent is £234,600 per annum reflecting a net initial yield of 6.78%.
The agreed purchase price of £3.25 million was funded from the Company's existing debt facilities, with net gearing1 increasing to 23.7% loan to value and £32.0 million now deployed from the Company's £35.0 million revolving credit facility.
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 added another modern industrial unit to our portfolio, which we believe has reversionary potential. IDI Gazeley have recently acquired an adjacent plot of land to develop a 240,000 sq ft warehouse, following recent developments by ASDA, Movianto and Lantmannen Unibake. The ongoing development in this area highlights its strength as a distribution centre and the consistent demand for industrial space from new and existing tenants."
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.