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Custodian REIT plc (CREI)
Custodian REIT plc: Purchase of Land with Pre-let Development
02-March-2018 / 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.
2 March 2018
Custodian REIT plc
("Custodian REIT" or "the Company")
Purchase of Land with Pre-let Development
Custodian REIT (LSE: CREI), the UK property investment company, is pleased
to announce the completion of a forward funding agreement for a pre-let
development, together with the purchase of the development land.
The Company has acquired 0.4 acres of land in Maypole, Birmingham, adjacent
to the busy A435 Alcester Road, one of the main arterial routes into
Birmingham city centre.
The development will comprise an 1,800 sq ft drive-through coffee shop with
16 parking spaces and construction is being phased over an expected six
month build period.
The unit, to be developed by Deeley Properties Limited, has been pre-let to
Starbucks Coffee UK Limited on a 15 year lease, without break, with five
yearly upward only market rent reviews. On completion of the development for
a total consideration of GBP1.75 million, the total passing rent will be
GBP120,000 per annum reflecting a net initial yield[1] of 6.43%.
The land purchase price of GBP1.0 million was funded from the Company's
existing cash facilities, resulting in net gearing2 increasing to 21.7% loan
to value.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of
Custodian Capital Limited (the Company's discretionary investment manager),
said:
"The growth of drive-through stores is being driven by the likes of Costa,
Starbucks and Greggs and is proving popular with retailers and customers,
which is leading to rental growth in the sector. The location of this
property on an arterial access route for Birmingham city centre allows easy
accessibility for traffic both entering and leaving the City, enhancing the
site's offering."
1 Passing rent divided by valuation plus estimated purchaser's costs.
2 Gross borrowings less unrestricted cash divided by last published property
portfolio valuation.
-Ends-
For further information, please contact:
Custodian Capital Limited
Richard Shepherd-Cross / Nathan Tel: +44 (0)116 240 8740
Imlach / Ian Mattioli MBE
www.custodiancapital.com [1]
Numis Securities Limited
Nathan Brown / 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 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 on
long leases throughout the UK and is principally characterised by properties
with individual values of less than GBP10 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 GBP10 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 www.custodianreit.com [2] and
www.custodiancapital.com [1].
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ISIN: GB00BJFLFT45
Category Code: MSCH
TIDM: CREI
Sequence No.: 5255
End of Announcement EQS News Service
659657 02-March-2018
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(END) Dow Jones Newswires
March 02, 2018 02:03 ET (07:03 GMT)
