DJ Custodian REIT plc: Disposal of Property
Custodian REIT plc (CREI) Custodian REIT plc: Disposal of Property 25-Oct-2021 / 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.
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25 October 2021
Custodian REIT plc
("Custodian REIT" or the "Company")
Disposal of Property
Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the disposal of a property from its portfolio.
The Company has sold a 42,289 sq ft car showroom in Stockport for GBP9.0 million, GBP1.4 million (18%) ahead of the 30 June 2021 valuation, representing a net initial yield1 of 6.7%.
The property is let to Williams BMW and Mini and was purchased in July 2017 for GBP8.8 million. Following the disposal, net gearing2 has decreased to 19.5%.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's external fund manager), said:
"This asset has provided a healthy level of income over our four years of ownership, during which we completed the asset management initiatives identified on acquisition of re-basing the rent and transferring the lease to a much stronger group covenant."
1 Passing rent divided by sale price plus estimated purchasers' costs.
2 Gross borrowings less cash (excluding rent deposits and retentions) divided by last published property portfolio valuation.
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For further information, please contact:
Custodian Capital Limited
Richard Shepherd-Cross / Ed Moore / Ian Mattioli MBE Tel: +44 (0)116 240 8740
www.custodiancapital.com
Numis Securities Limited
Hugh Jonathan / Nathan Brown 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 and www.custodiancapital.com.
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ISIN: GB00BJFLFT45 Category Code: DIS TIDM: CREI LEI Code: 2138001BOD1J5XK1CX76 OAM Categories: 2.2. Inside information Sequence No.: 125047 EQS News ID: 1243011 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
October 25, 2021 02:00 ET (06:00 GMT)
