REG-Custodian REIT plc Custodian REIT plc : Custodian REIT sells industrial unit at 12% ahead of June valuation

Custodian Property Income ReitAnnouncement

08/11/2022 07:15

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   Custodian REIT plc (CREI)
   Custodian REIT plc : Custodian REIT sells industrial unit at 12% ahead of
   June valuation

   08-Nov-2022 / 07:00 GMT/BST
   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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                                                              8 November 2022

    

                                        

                               Custodian REIT plc

                                        

                      (“Custodian REIT” or the “Company”)

                                        

      Custodian REIT sells industrial unit at 12% ahead of June valuation

    

   Custodian 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 the disposal of an industrial  unit
   in Kilmarnock at auction for £1.4 million at a 12% premium to its 30  June
   2022 valuation.

    

   The  environmental  credentials  of  the   18,424  sq  ft  warehouse   and
   distribution unit no longer fit with  the Company’s ESG objectives and  it
   was not considered  practical to  mitigate these  risks.  Having  recently
   increased the lease term by 10 years  it was considered the right time  to
   sell and crystallise a valuation uplift.

    

   Commenting on the disposal,  Richard Shepherd-Cross, Managing Director  of
   Custodian Capital  Limited (the  Company’s external  fund manager),  said:
   “The sale of this industrial unit  at a premium to valuation  demonstrates
   the ongoing liquidity in the market for smaller lot sized commercial  real
   estate, underscoring our investment thesis.  Having acquired this property
   as part of our IPO portfolio eight years ago and having recently increased
   the lease term  until 2032,  we felt  that now  was an  opportune time  to
   crystallise the value we have created.  The proceeds of the disposal  will
   be recycled into identified improvements to the remaining portfolio  which
   we believe  will be  more accretive  and better  support the  strategy  of
   providing shareholders with strong income returns.”

    

                                    - 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

    

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

    

   FTI Consulting                                                       
   Richard Sunderland / Ellie Sweeney           Tel: +44 (0)20 3727 1000
                                       2 custodianreit@fticonsulting.com

    

   Notes to Editors

    

   Custodian REIT plc  is a UK  real estate investment  trust, listed on  the
   main market  of  the  London  Stock  Exchange.   Its  portfolio  comprises
   properties predominantly let to institutional grade tenants on long leases
   throughout the  UK and  is principally  characterised by  properties  with
   individual values of less than £15 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 sub  £15  million lot  size,  regional 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      3 www.custodianreit.com     and
    4 www.custodiancapital.com.

    

    

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   ISIN:           GB00BJFLFT45
   Category Code:  MSCH
   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.:   199389
   EQS News ID:    1481151


    
   End of Announcement EQS News Service

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References

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