DJ Custodian REIT plc: Custodian REIT acquires high specification logistics asset
Custodian REIT plc (CREI) Custodian REIT plc: Custodian REIT acquires high specification logistics asset 13-Sep-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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13 September 2022
Custodian REIT plc
("Custodian REIT" or the "Company")
Custodian REIT acquires high specification logistics asset
Custodian REIT (LSE: CREI), the UK property investment company focused on smaller regional property, is pleased to announce the acquisition of a 91,955 sq ft distribution facility between Glasgow and Edinburgh for GBP11.125 million, reflecting a net initial yield1 of 5.25%.
The property benefits from a strategic logistics location on the Eurocentral industrial estate, at Junction 7 of the M8, 15 miles from Glasgow and 35 miles from Edinburgh. The asset is fully let to Gist, a national distribution business, with five years remaining on the lease and three years to a break option, and producing a passing rent of GBP623,160 per annum.
The acquisition was funded from the Company's existing debt facilities, increasing net gearing2 to 24.0% loan to value, which remains within the Company's 25% target.
This acquisition increases the industrial weighting within the Company's highly diversified portfolio of 165 properties to 48% by value.
Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's discretionary investment manager), commented: "This well located, modern industrial asset has been acquired off-market at an attractive net initial yield of 5.25%. We see scope to significantly increase the rental intake of this conservatively let asset based on recent local comparables combined with strong occupational demand, meaning we expect the reversionary yield3 on purchase price to move towards c. 7%. This purchase highlights the yield advantage offered by the Company's smaller regional property strategy of acquiring strong and secure assets with the potential for future income and valuation growth."
1 Passing 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.
3 Reversionary rent divided by purchase price plus assumed purchasers' costs.
-Ends-
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
FTI Consulting
Richard Sunderland / Ellie Sweeney Tel: +44 (0)20 3727 1000
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 GBP15 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 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: MSCH TIDM: CREI LEI Code: 2138001BOD1J5XK1CX76 Sequence No.: 187591 EQS News ID: 1440701 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
September 13, 2022 02:00 ET (06:00 GMT)
