REG-Custodian REIT plc Custodian REIT plc : Custodian REIT sells North-East Shopping Centre for £9.3 million, ahead of 2021 purchase price

Custodian Property Income ReitAnnouncement

21/10/2022 07:15

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   Custodian REIT plc (CREI)
   Custodian REIT plc : Custodian REIT sells North-East Shopping Centre for
   £9.3 million, ahead of 2021 purchase price

   21-Oct-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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                                                              21 October 2022

    

                                        

                               Custodian REIT plc

                                        

                      (“Custodian REIT” or the “Company”)

                                        

   Custodian REIT sells North-East Shopping Centre for £9.3 million, ahead of
                              2021 purchase price

    

   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 its only high street
   shopping centre for £9.3 million1.  The Company purchased the 73,367 sq ft
   shopping centre in Gosforth as part of its acquisition of DRUM Income Plus
   REIT plc in November  2021 and the  price reflects a  3.5% premium to  the
   £8.975 million apportioned value of the asset at that time.

    

   Since acquisition, the Company has completed a number of asset  management
   activities which have increased  occupancy from 93.6%  to 95.7% and  grown
   the rent roll  by £78k (8.5%),  with the asset  producing £0.9 million  of
   rental income over the period of ownership.

    

   The Company intends to invest the sale proceeds in its ongoing pipeline of
   building refurbishments, which  is expected to  enhance rents and  improve
   the environmental performance of the Company’s portfolio.

    

   Commenting on the disposal,  Richard Shepherd-Cross, Managing Director  of
   Custodian Capital  Limited (the  Company’s external  fund manager),  said:
   “Shopping centres as a sector have  not performed well since the  COVID-19
   pandemic and do not  fit comfortably within  our investment objectives  of
   selecting high quality,  well located regional  properties in areas  where
   future rental growth is underpinned by strong supply/demand  fundamentals.
   The asset management  work completed since  acquisition and the  accretive
   terms of the DRUM Income Plus REIT plc purchase have allowed us to achieve
   a profitable  sale  despite  current market  uncertainty.   This  disposal
   provides additional capital for our programme of improving assets we  feel
   will better capture tenant demand over the long term as well as  enhancing
   their environmental credentials.”

    

   1 Adjusted for rental top-ups on vacant units.

    

                                    - 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.:   195679
   EQS News ID:    1468135


    
   End of Announcement EQS News Service

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