Mattioli Woods Regulatory News (MTW)

Mattioli Woods plc

("Mattioli Woods" or the "Company")

Appointment as investment manager to new closed-ended property investment company

Mattioli Woods plc (AIM: MTW.L) is pleased to announce the appointment of its subsidiary, Custodian Capital Limited, as the discretionary investment manager of Custodian REIT Plc (LSE: CREI) ("Custodian REIT" or "the Fund"), a newly incorporated closed-ended property investment company.

Custodian REIT has today announced the result of its placing and offer for subscription, and the admission of its ordinary shares to the premium segment of the Official List of the Financial Conduct Authority and dealing on the Main Market of London Stock Exchange plc. The placing and offer for subscription were significantly oversubscribed by investors.

Custodian REIT has acquired an initial portfolio of 48 properties valued at over £95 million (excluding associated borrowings), split across all property sectors and 90 separate tenancies. The Fund will use the £55 million of new funds raised to invest in a diversified portfolio of commercial real estate opportunities.

Commenting on today's announcement, Ian Mattioli, Chief Executive of Mattioli Woods and Non-Executive Director of Custodian REIT said:

"The appointment of Custodian Capital as the manager of Custodian REIT is a significant milestone for Mattioli Woods, marking the next phase in the development our business. We are delighted with the positive response to the launch of the new fund from our existing clients and strong demand from new investors. The interest shown is a great endorsement of the investment proposition and investors' confidence in the expertise and strong track record of our property investment business."

Richard Shepherd-Cross, Managing Director of Custodian Capital, added:

"The new funds raised will allow Custodian REIT to take advantage of a pipeline of opportunities to grow its diverse portfolio of existing property. We are focused on delivering an attractive level of income together with the potential for capital growth from a balanced portfolio of real estate assets".

Custodian REIT will target an annualised dividend yield, payable quarterly, of 5.25% in respect of the financial year ending 31 March 2015 and 6.25% thereafter, each by reference to the issue price.

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