Custodian REIT plc : Purchase of Property

9 December 2021

Custodian REIT plc

("Custodian REIT" or the "Company")

Purchase of Property

Custodian REIT (LSE: CREI), the UK property investment company focused on smaller lot-sizes, is pleased to announce a further property purchase. 

The Company has acquired a 45,779 sq ft retail warehouse unit in Cromer occupied by Homebase, with nearby retailers including Travis Perkins, Topps Tiles, Screwfix, Halfords and Argos.

The property is let on a lease expiring in July 2028 with a current passing rent of £300,000 per annum, reflecting a net initial yield1 of 6.29%.

The agreed purchase price of £4.5 million was funded from the Company's existing debt resources, resulting in net gearing2 increasing to 21.1% loan to value.

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

"Well located retail warehouses are complementary to on-line retailing and have remained in demand during the restructuring of the retail market and the COVID-19 pandemic.  Homebase has traded well from this modern unit in Cromer's core retail warehouse pitch and this property firmly meets our investment criteria."

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

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

-Ends-

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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 characterised by properties with individual values of less than £10 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 £10 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.