REG-Custodian REIT plc Custodian REIT plc : Custodian REIT acquires high specification logistics asset

Custodian Property Income ReitAnnouncement

13/09/2022 07:15

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   Custodian REIT plc (CREI)
   Custodian REIT plc : Custodian REIT acquires high specification logistics
   asset

   13-Sep-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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                                                            13 September 2022

    

                                        

                               Custodian REIT plc

    (“Custodian REIT” or the “Company”)

                                        

           Custodian REIT acquires high specification logistics asset

    

   Custodian REIT (LSE: CREI), the UK property investment company focused  on
   smaller regional property,  is pleased  to announce the  acquisition of  a
   91,955 sq  ft  distribution facility  between  Glasgow and  Edinburgh  for
   £11.125 million, reflecting a net initial yield1 of 5.25%.

    

   The  property  benefits  from  a  strategic  logistics  location  on   the
   Eurocentral industrial estate,  at Junction  7 of  the M8,  15 miles  from
   Glasgow and 35 miles from  Edinburgh.  The asset is  fully let to Gist,  a
   national distribution business, with five years remaining on the lease and
   three years to a  break option, and producing  a passing rent of  £623,160
   per annum.

    

   The acquisition was  funded from the  Company’s existing debt  facilities,
   increasing net gearing2 to 24.0% loan  to value, which remains within  the
   Company’s 25% target.

    

   This acquisition increases the  industrial weighting within the  Company’s
   highly diversified portfolio of 165 properties to 48% by value.

    

   Richard Shepherd-Cross,  Managing Director  of Custodian  Capital  Limited
   (the Company’s discretionary  investment manager),  commented: “This  well
   located, modern  industrial  asset  has been  acquired  off-market  at  an
   attractive net  initial yield  of 5.25%.   We see  scope to  significantly
   increase the  rental intake  of  this conservatively  let asset  based  on
   recent local comparables combined with strong occupational demand, meaning
   we expect the  reversionary yield3 on  purchase price to  move towards  c.
   7%.  This purchase highlights the yield advantage offered by the Company’s
   smaller regional property strategy of  acquiring strong and secure  assets
   with the potential for future income and valuation growth.”

    

   1 Passing rent divided by purchase price plus assumed purchasers’ costs.

   2 Gross  borrowings  less  cash  (excluding  tenant  rental  deposits  and
   retentions) divided by last published property portfolio valuation.

   3 Reversionary rent  divided by  purchase price  plus assumed  purchasers’
   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/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 smaller  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
   Sequence No.:  187591
   EQS News ID:   1440701


    
   End of Announcement EQS News Service

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References

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