Custodian REIT plc : Purchase of Property

5 November 2018

Custodian REIT plc

("Custodian REIT" or the "Company")

Purchase of Property

Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce a further property purchase.

The Company has acquired a high street unit on The Grove in Stratford, East London, comprising a ground floor retail unit with an upper floor office suite.  Nearby occupiers include Morrisons, Boots, Argos, Lidl and Nando's.

The property is let to Foxton's Estate Agents and The Incorporated Trustees of the Universal Church of the Kingdom of God ("UCKG") with leases expiring on 30 April 2031 and 2 May 2025 respectively and a current passing rent of £150,935 per annum, reflecting a net initial yield[1] of 6.78%.

The agreed purchase price of £2.1 million was funded from the Company's existing debt resources, resulting in net gearing[2] increasing to 20.6% loan to value.

Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's discretionary investment manager), said:

"Following the London 2012 Olympics, Stratford is now well established as East London's most significant retail and leisure destination, with completion of the Crossrail project due in December 2019 set to further enhance the area.  Both tenants are committed to the location having recently renewed their leases at higher rents and the resulting weighted average unexpired lease term to first break of over eight years adds secure income to the portfolio.  The title provides the ability to use the adjacent Morrison's car park without restriction, providing almost unlimited car parking, which is a major selling point should the premises ever become vacant."

1 Passing rent divided by valuation plus assumed purchasers' costs.

2 Gross borrowings less unrestricted cash divided by last published property portfolio valuation.

-Ends-

For further information, please contact:

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 small lot sizes, with individual property values of less than £10m 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 lot size 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..