REG-Custodian Property Income REIT plc Custodian Property Income REIT plc: Disposal of Properties

Custodian Property Income ReitAnnouncement

02/04/2024 07:15

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   Custodian Property Income REIT plc (CREI)
   Custodian Property Income REIT plc: Disposal of Properties

   02-Apr-2024 / 07:00 GMT/BST

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                                                                 2 April 2024

    

                       Custodian Property Income REIT plc

                                        

              (“Custodian Property Income REIT” or the “Company”)

                                        

                             Disposal of Properties

    

   Custodian Property  Income REIT  (LSE:  CREI), which  seeks to  deliver  a
   strong income return by  investing in a  diversified portfolio of  smaller
   regional properties across  the UK,  is pleased  to announce  that it  has
   completed the  sale of  an  industrial unit  in  Weybridge for  £6.0m  and
   unconditionally exchanged on the disposal  of a vacant industrial unit  in
   Warrington for £9.0m (“the Disposals”).

    

   The Disposals were previously disclosed  in the Company’s announcement  of
   28 February 2024, with the  respective sales prices representing  premiums
   to 31 December 2023 valuations of 5.2% (£0.3m) and 61% (£3.4m).

    

   The Warrington  disposal is  expected to  complete in  mid-April 2024  and
   total proceeds from the Disposals of £15.0m will be used towards  repaying
   the Company’s existing revolving debt facility, reducing LTV by circa 2%.

    

   Commenting on the Disposals, Richard Shepherd-Cross, Managing Director  of
   Custodian Capital Limited (the Company’s external fund manager), said:

    

   “Whilst planning consent  has been  received to  redevelop the  Warrington
   site we believe that, due to a lack of occupier demand and the ability  to
   crystallise a substantial  profit for  our shareholders, now  is the  best
   time to  sell.   Selling  vacant property  is  particularly  accretive  to
   earnings by both saving void costs and reducing interest expense.

    

   “The Weybridge asset has provided a healthy level of income over its  four
   years of ownership  and having  re-let the unit  in 2022  at an  increased
   level of rent,  we believe future  rental growth may  not meet our  income
   growth expectations going forwards so we have made the decision to sell.”
    

                                    - Ends -

    

   For further information, please contact:

    

   Custodian Capital Limited                                                 
   Richard Shepherd-Cross / Ed Moore / Ian           Tel: +44 (0)116 240 8740
   Mattioli MBE
                                                   1 www.custodiancapital.com

    

   Deutsche Numis                                     
   Hugh Jonathan/Nathan Brown Tel: +44 (0)20 7260 1000
                                     www.numiscorp.com

    

   FTI Consulting                                                            
   Richard Sunderland / Andrew Davis / Oliver        Tel: +44 (0)20 3727 1000
   Parsons
                                              custodianreit@fticonsulting.com

    

   Notes to Editors

    

   Custodian Property Income 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  throughout   the  UK  and  is   principally
   characterised by smaller, regional, core/core-plus properties. 

    

   The Company  offers  investors the  opportunity  to access  a  diversified
   portfolio of UK commercial  real estate through  a closed-ended fund.   By
   principally targeting  smaller, regional,  core/core-plus properties,  the
   Company seeks 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       2 custodianreit.com      and
    3 custodiancapital.com.

    

    

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   Dissemination of a Regulatory Announcement that contains inside
   information in accordance with the Market Abuse Regulation (MAR),
   transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:           GB00BJFLFT45
   Category Code:  DIS
   TIDM:           CREI
   LEI Code:       2138001BOD1J5XK1CX76
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   312692
   EQS News ID:    1870317


    
   End of Announcement EQS News Service

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