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

Custodian Property Income ReitAnnouncement

30/09/2021 07:05

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

   30-Sep-2021 / 07:00 GMT/BST
   Dissemination of a Regulatory Announcement that contains inside
   information according to REGULATION (EU) No 596/2014 (MAR), transmitted by
   EQS Group.
   The issuer is solely responsible for the content of this announcement.

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                                                            30 September 2021

    

                               Custodian REIT plc

                                        

                      ("Custodian REIT" or the "Company")

                                        

                             Disposal of Properties

    

   Custodian REIT (LSE: CREI), the UK property investment company, is pleased
   to announce  it  has  completed  the disposal  of  a  portfolio  of  seven
   properties ("the Portfolio") for £32.6 million. 

    

   The   Portfolio   comprises   five   industrial   sites   in    Gateshead,
   Stockton-on-Tees, Warrington, Stone and Christchurch announced on 30  July
   2021  as  having  unconditionally  exchanged  to  sell,  and  two  further
   industrial properties in Aberdeen and Bedford. The Portfolio has a current
   passing rent  of £2.0 million,  and a  net initial  yield1 of  5.9%.   The
   properties within the Portfolio were acquired either in the seed portfolio
   at IPO or within subsequent portfolio acquisitions.

    

   The agreed sale price  of £32.6m is £5.1m  (19%) above the Portfolio's  31
   March 2021 valuation, when terms of the sale were agreed, and £2.9m  (10%)
   above the Portfolio's 30 June 2021 valuation.

    

   Commenting on the disposal,  Richard Shepherd-Cross, Managing Director  of
   Custodian  Capital  Limited   (the  Company's   external  fund   manager),
   reiterated:

    

   "Investment demand and pricing  for industrial assets  are both at  record
   levels, so we believe now  is the best time to  sell to capitalise on  the
   current, favourable market dynamics to secure a significant profit.

    

   "While the short-term  prospects for  the each  of the  properties in  the
   Portfolio remain  robust,  over  the  medium  term  we  consider  them  as
   non-core.

    

   "Due to  a delayed  completion  we have  already  been able  to  re-deploy
   proceeds, whilst sustaining dividend cover, in higher quality assets  with
   greater prospects for  income and  capital growth,  better supporting  the
   Board's objective of increasing dividends in a sustainable way."

    

   1 Aggregate  rent, which  includes rental  guarantees, divided  by  agreed
   disposal price plus estimated purchaser's costs.

    

                                    - 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            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  is a  UK real  estate investment  trust with  a  portfolio
   comprising properties  predominantly let  to institutional  grade  tenants
   throughout the UK, principally characterised by properties with individual
   values of less than £10m at acquisition.

    

   The Company  offers  investors the  opportunity  to access  a  diversified
   portfolio of UK commercial  real estate through  a closed-ended fund.   By
   principally targeting sub £10m lot size, regional properties, the  Company
   intends to provide investors  with an attractive level  of income and  the
   potential for capital growth, becoming the REIT of choice for private  and
   institutional  investors   seeking   high  and   stable   dividends   from
   well-diversified UK real estate.

    

   Custodian Capital Limited is the  discretionary investment manager of  the
   Company. 

    

   For    more     information     visit      2 www.custodianreit.com     and
    3 www.custodiancapital.com.

    

    

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   ISIN:           GB00BJFLFT45
   Category Code:  DIS
   TIDM:           CREI
   LEI Code:       2138001BOD1J5XK1CX76
   OAM Categories: 2.2. Inside information
   Sequence No.:   123220
   EQS News ID:    1236937


    
   End of Announcement EQS News Service

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