Custodian REIT plc (CREI)
Custodian REIT plc: Purchase of Land with Pre-let Development
29-Jul-2020 / 10:28 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.
29 July 2020
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 0.6 acres of land in Nottingham, adjacent to the
Castle Marina Shopping Park and near to the recently developed NG2 Business
Park on the busy A453 Queens Drive, the main arterial route into Nottingham
city centre from the South.
The development will comprise a 2,163 sq ft drive-through coffee shop with
34 parking spaces and construction is being phased over an expected six
month build period.
The unit, to be developed by Portal Nottingham Limited, has been pre-let to
KBeverage Limited (trading as Starbucks Coffee) on a 20 year lease, without
break, with five yearly upward only market rent reviews. On completion of
the development for a total consideration of GBP1.725 million, the total
passing rent will be GBP115,000 per annum reflecting a net initial yield[1] of
6.67%.
The land purchase price of GBP0.9 million was funded from the Company's
existing cash resources, resulting in net gearing2 increasing to 22.3% loan
to value.
Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of
Custodian Capital Limited (the Company's discretionary investment manager),
said:
"Demand for drive-through stores continues to show growth, especially in the
hot beverage market, and is proving resilient in the face of the COVID-19
pandemic. The location of this property on an arterial access route for
Nottingham 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: MSCU
TIDM: CREI
LEI Code: 2138001BOD1J5XK1CX76
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 78813
EQS News ID: 1105207
End of Announcement EQS News Service
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(END) Dow Jones Newswires
July 29, 2020 05:28 ET (09:28 GMT)
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