DJ Custodian Property Income REIT plc: Disposal of Properties
Custodian Property Income REIT plc (CREI)
Custodian Property Income REIT plc: Disposal of Properties
02-Apr-2024 / 07:00 GMT/BST
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2 April 2024
Custodian Property Income REIT plc
("Custodian Property Income REIT" or the "Company")
Disposal of Properties
Custodian Property Income REIT (LSE: CREI), which seeks to deliver a strong income return by investing in a diversified
portfolio of smaller regional properties across the UK, is pleased to announce that it has completed the sale of an
industrial unit in Weybridge for GBP6.0m and unconditionally exchanged on the disposal of a vacant industrial unit in
Warrington for GBP9.0m ("the Disposals").
The Disposals were previously disclosed in the Company's announcement of 28 February 2024, with the respective sales
prices representing premiums to 31 December 2023 valuations of 5.2% (GBP0.3m) and 61% (GBP3.4m).
The Warrington disposal is expected to complete in mid-April 2024 and total proceeds from the Disposals of GBP15.0m will
be used towards repaying the Company's existing revolving debt facility, reducing LTV by circa 2%.
Commenting on the Disposals, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's
external fund manager), said:
"Whilst planning consent has been received to redevelop the Warrington site we believe that, due to a lack of occupier
demand and the ability to crystallise a substantial profit for our shareholders, now is the best time to sell. Selling
vacant property is particularly accretive to earnings by both saving void costs and reducing interest expense.
"The Weybridge asset has provided a healthy level of income over its four years of ownership and having re-let the unit
in 2022 at an increased level of rent, we believe future rental growth may not meet our income growth expectations
going forwards so we have made the decision to sell."
- 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
Deutsche Numis
Hugh Jonathan/Nathan Brown Tel: +44 (0)20 7260 1000
www.numiscorp.com
FTI Consulting
Richard Sunderland / Andrew Davis / Oliver Parsons Tel: +44 (0)20 3727 1000
custodianreit@fticonsulting.com
Notes to Editors
Custodian Property Income 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 throughout the UK and is principally characterised by smaller, regional, core/core-plus properties.
The Company offers investors the opportunity to access a diversified portfolio of UK commercial real estate through a closed-ended fund. By principally targeting smaller, regional, core/core-plus properties, the Company seeks 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 custodianreit.com and custodiancapital.com.
----------------------------------------------------------------------------------------------------------------------- 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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ISIN: GB00BJFLFT45 Category Code: DIS 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.: 312692 EQS News ID: 1870317 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
April 02, 2024 02:00 ET (06:00 GMT)
