REG-Custodian REIT plc Custodian REIT plc : Custodian REIT sells industrial unit for £8.5 million, 73% ahead of valuation

Custodian Property Income ReitAnnouncement

03/08/2022 07:15

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   Custodian REIT plc (CREI)
   Custodian REIT plc : Custodian REIT sells industrial unit for £8.5
   million, 73% ahead of valuation

   03-Aug-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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                                                                3 August 2022

    

                                        

                               Custodian REIT plc

                                        

                      (“Custodian REIT” or the “Company”)

                                        

      Custodian REIT sells industrial unit for £8.5 million, 73% ahead of
                                   valuation

    

   Custodian REIT (LSE: CREI), the UK property investment company focused  on
   smaller lot-sized regional property, is  pleased to announce the  disposal
   of an industrial unit in Milton  Keynes for £8.5 million at a 73%  premium
   to its 31 March 2022 valuation.

    

   Custodian REIT acquired the 44,187  sq ft warehouse and distribution  unit
   in January 2015 for £2.1 million and subsequently invested a further  £0.9
   million to  fully refurbish  the  property.  This  refurbishment  included
   re-cladding the  exterior,  replacing the  roof,  restoring the  yard  and
   renovating the interior which in aggregate improved the property’s  energy
   performance certificate (“EPC”) rating from ‘E’  to ‘C’.  As a result  the
   property was let at  a higher rent to  Saint Gobain Building  Distribution
   for six years before  a tenant break option  was exercised in June  2022. 
   The sale of  the unit  to a special  purchaser was  then negotiated  which
   required the property with vacant possession.

    

   This disposal decreases the industrial weighting by valuation1 within  the
   Company’s highly diversified portfolio of 164 properties to 47%, with  the
   balance comprising 21% retail warehouse, 13% office, 12% other and 7% high
   street retail, all of which are in strong economic areas across the UK.

    

   Commenting on the disposal,  Richard Shepherd-Cross, Managing Director  of
   Custodian Capital Limited (the Company’s external fund manager), said: “We
   acquired this property having clearly identified an opportunity to  create
   value by investing in the asset  and bringing it up to modern  standards. 
   As a result  we were  able to  let the  property promptly  and generate  a
   healthy and growing level of income during our seven years of  ownership. 
   When the  tenant exercised  its  break option  we took  the  opportunistic
   decision to dispose of the property to a special purchaser.  This sale has
   allowed us  to  crystallise  a significant  profit  for  shareholders  and
   further demonstrates the benefits of a smaller regional property strategy,
   where in certain circumstances the vacant possession value fully  supports
   and sometimes exceeds the investment value.”

    

   1 Portfolio weighting  by income:  industrial 38%,  retail warehouse  24%,
   office 16%, 11% high street and 11% other.

    

    

                                    - 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 sub  £10  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: IRS
   TIDM:          CREI
   LEI Code:      2138001BOD1J5XK1CX76
   Sequence No.:  178815
   EQS News ID:   1411673


    
   End of Announcement EQS News Service

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