26 March 2018

 

 

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 46,550 sq ft industrial unit on Team Valley Trading Estate, Gateshead, the north east's leading mixed-use business park at junction 68 of the A1, three miles from Newcastle upon Tyne.  Nearby occupiers include Booker, Royal Mail and Sainsbury's.

 

The unit is let to Worthington Armstrong (UK) Limited on a lease expiring on 25 August 2026.  Current passing rent is £279,400 per annum reflecting a net initial yield1 of 6.73%.

 

The agreed purchase price of £3.9 million was funded from the Company's existing debt facilities, resulting in net gearing2 increasing to 21.6% 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 unit located on the north east's prime industrial park, let to a market leading manufacturer.  The tenant has been in occupation for over 20 years, and carried out an expansion in 2016, highlighting its ongoing commitment to the site."

 

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

2 Gross borrowings less unrestricted cash divided by last published property portfolio valuation.

 

-Ends-

 

For further information, please contact:

 

Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach / 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 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.