REG-Custodian Property Income REIT plc Custodian Property Income REIT plc: Update on the Strategic Acquisition of £36m Grove Court Portfolio

Custodian Property Income ReitAnnouncement

Today 07:00

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   Custodian Property Income REIT plc (CREI)
   Custodian Property Income REIT plc: Update on the Strategic Acquisition of
   £36m Grove Court Portfolio

   13-Apr-2026 / 07:00 GMT/BST

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                                                                13 April 2026

                                        

                       Custodian Property Income REIT plc

                                        

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

                                        

       Update on the Strategic Acquisition of £36m Grove Court Portfolio

    

   Custodian Property  Income REIT  (LSE: CREI),  which seeks  to deliver  an
   enhanced income return by investing in a diversified portfolio of smaller,
   regional properties  with strong  income  characteristics across  the  UK,
   provides an update on its purchase of a £35.9m family-owned portfolio (the
   “Grove Court  Portfolio”) which  was achieved  through the  majority-share
   acquisition of Grove Court  Properties (Holdings) Limited (“Grove  Court”)
   (“the Transaction”) announced on 16 February 2026.

    

   Since completion  of  the  Transaction,  the  Grove  Court  Portfolio  has
   performed in line with expectations with occupancy remaining at c. 97%. In
   addition we have completed successfully a  rent review which secured a  5%
   increase in passing rent, in line with estimated rental value, at a  motor
   dealership in Beaconsfield  which is the  Grove Court Portfolio’s  largest
   asset and occupier by income, now accounting for 27% of its rent roll.

    

   Following this rent review and the finalisation of Grove Court  completion
   accounts, deferred  consideration  has now  been  settled relating  to  an
   associated performance related  overage payment, and  the issuance of  the
   final tranche of equity consideration.

    

   Commenting on the Transaction,  Richard Shepherd-Cross, Managing  Director
   of Custodian  Capital Limited,  the  Company’s Investment  Manager,  said:
   “Following the strategic majority-share acquisition of Grove Court earlier
   this  year,  its  complimentary  properties  have  improved  our  existing
   portfolio by providing tenant diversification and further defensive income
   to help drive  earnings, while  helping us continue  to add  scale to  our
   business. We have already secured a 5% rental uplift with the occupier  at
   Grove Court’s largest asset by  income, further cementing our belief  that
   we can capture the latent value in this portfolio.

    

   “Despite  macroeconomic  and  geopolitical  uncertainty,  this  innovative
   growth strategy has proved to be an effective way to continue scaling  our
   diversified portfolio, while also benefitting our income focused strategy.
   In a short  space of  time, we  have undertaken  three separate  corporate
   acquisitions  of  family  held   property  holdings  totalling   c.£66.5m,
   demonstrating our  commitment  to  generating  shareholder  value  through
   disciplined consolidation.  We recognise  the  importance of  growing  the
   business alongside earnings, and creating value for shareholders is  front
   of  mind,   as  we   continue  to   progress  our   pipeline  of   similar
   opportunities.”

    

   Transaction consideration and issue of equity

    

   On completion of the Transaction in February 2026, expected  consideration
   comprised:

    

     • Initial consideration of £9.0m cash and 24,116,729 new ordinary shares
       in the Company;
     • 0.8m further  new ordinary  shares  to be  issued on  finalisation  of
       completion accounts; and
     • £0.3m of cash overage  based on the outcome  of a pending rent  review
       (£0.2m) and a pending lease renewal (£0.1m).

    

   There is  also  the  potential  to issue  further  new  shares  to  settle
   acquisition retentions up  to a  maximum value  of £0.6m,  subject to  the
   outcome of an upcoming lease expiry and undertaking certain capital works.

    

   Today the Company announces:

    

     • The payment of overage of  £0.2m following successful completion of  a
       rent review, in line with expectations; and
     • The finalisation of completion accounts in relation to the Transaction
       and the associated issuance of  735,920 new ordinary shares (“the  New
       Shares”) to be admitted  to the premium segment  of the Official  List
       and to trading on the London  Stock Exchange's Main Market for  listed
       securities ("Admission").  It is  expected that Admission will  become
       effective and dealings in  the New Shares will  commence at 8am on  16
       April 2026.  The  New Shares will  rank pari passu  with the  ordinary
       shares already in issue.

    

   The Company holds 6,045,732 of its ordinary shares in Treasury,  purchased
   since 30 June 2025 under a previously announced non-discretionary  buyback
   programme. The  total number  of voting  rights of  the Company  following
   Admission of the New Shares and excluding treasury shares is  488,752,709,
   and this figure  may be used  by shareholders as  the denominator for  the
   calculations by which they will determine  if they are required to  notify
   their interest in, or of a change to their interest in, the Company  under
   the FCA's Disclosure and Transparency Rules.

    

                                    - Ends -

    

   Further information:

    

   Further information regarding the  Company can be  found at the  Company's
   website  1 custodianreit.com or please contact:

    

   Custodian Capital Limited                                             
   Richard Shepherd-Cross – Managing Director

   Ed Moore – Finance Director                   Tel: +44 (0)116 240 8740

   Ian Mattioli MBE DL – Chairman
                                               2 www.custodiancapital.com

    

   Deutsche Numis                                       
   Hugh Jonathan / George Shiel Tel: +44 (0)20 7260 1000
                                   www.dbnumis.com/funds

    

   FTI Consulting                                                            
   Richard Sunderland / Ellie Sweeney /              Tel: +44 (0)20 3727 1000
   Andrew Davis / Oliver Parsons
                                            3 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       4 custodianreit.com      and
    5 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  6 EQS Group.
   The issuer is solely responsible for the content of this announcement.

   View original content:  7 EQS News

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   ISIN:          GB00BJFLFT45
   Category Code: MSCL
   TIDM:          CREI
   LEI Code:      2138001BOD1J5XK1CX76
   Sequence No.:  423662
   EQS News ID:   2306782


    
   End of Announcement EQS News Service

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