Custodian REIT plc : Purchase of Property

3 March 2022

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 property purchase.

The Company has acquired a 24,134 sq ft industrial unit on Moorgreen Industrial Park, Nottingham, four miles from M1 J27.  The unit is occupied by Hickling & Squires with a weighted average unexpired term to first break or expiry of 7.0 years.

The unit has a passing rent of £130,000 per annum, reflecting a net initial yield1 of 6.53%.

The agreed purchase price of £1.875 million was funded from the Company's existing debt facilities, resulting in net gearing2 increasing to 20.7% loan to value.

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

"We are delighted to have secured this modern industrial asset in an excellent location.  The purchase was agreed off-market and the net initial yield of 6.53% is above average for a market typified by significant occupier demand leading to rental increases."

1 Passing rent divided by purchase price plus assumed purchaser's costs.

2 Gross borrowings less cash (excluding tenant rental deposits and retentions) 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 principally characterised by small lot sizes, with individual property 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 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.