REG-Custodian REIT plc Custodian REIT plc : Custodian REIT acquires high-yielding long lease industrial asset

Custodian Property Income ReitAnnouncement

26/07/2022 07:15

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   Custodian REIT plc (CREI)
   Custodian REIT plc : Custodian REIT acquires high-yielding long lease
   industrial asset

   26-Jul-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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                                                                 26 July 2022

    

                                        

                               Custodian REIT plc

    (“Custodian REIT” or the “Company”)

                                        

       Custodian REIT acquires high-yielding long lease industrial asset

    

   Custodian REIT (LSE: CREI), the UK property investment company focused  on
   smaller lot-sizes, is pleased to announce that it has acquired a 47,882 sq
   ft industrial facility which is fully let to Container Components  Limited
   with 20  years  remaining on  the  lease for  £3.5 million.  The  property
   produces an index linked passing rent of £227,440 per annum, reflecting  a
   net initial yield1 of 6.10%, and is located two miles from junction 29  of
   the M1 near Chesterfield, Derbyshire. 

    

   The acquisition was  funded from the  Company’s existing debt  facilities,
   increasing net gearing2 to 23.8% loan  to value, which remains within  the
   Company’s target range.

    

   This acquisition increases the  industrial weighting within the  Company’s
   highly diversified portfolio of  165 properties to  38%, with the  balance
   comprising 24% retail warehouse,  16% office, 11%  high street retail  and
   11% other, all of which are in strong economic areas across the UK.

    

   Commenting on the acquisition,  Richard Shepherd-Cross, Managing  Director
   of Custodian  Capital  Limited  (the  Company’s  discretionary  investment
   manager), said:   “This well  located, modern  industrial asset  has  been
   acquired at  an entry  yield of  6.10% which  is significantly  above  the
   market average for  industrial assets.   The property  also benefits  from
   five-yearly  index  linked  rental   increases  which  provide   long-term
   inflation-adjusted income.   The  acquisition demonstrates  our  continued
   ability to source high quality assets on behalf of our shareholders  which
   offer enhanced but  secure income  returns by focussing  on smaller  sized
   properties where there is reduced competition.”

    

   1 Reversionary 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.

    

                                     -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 £10 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  lot size  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.:  177030
   EQS News ID:   1405493


    
   End of Announcement EQS News Service

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References

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