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Custodian REIT acquires high-yielding long leas...
Custodian REIT acquires high-yielding long leas....
About this update from Custodian Property Income Reit Plc
[{"type":"text","content":"\n \n\n\nCustodian REIT plc (CREI)\n\n\n\nCustodian REIT plc : Custodian REIT acquires high-yielding long lease industrial asset26-Jul-2022 / 07:00 GMT/BSTDissemination 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.\n\n\n\n \n\n\n \n\n26 July 2022\n\n \n\n \n\nCustodian REIT plc\n\n (“Custodian REIT” or the “Company”)\n\n \n\nCustodian REIT acquires high-yielding long lease industrial asset\n\n \n\nCustodian REIT (LSE: CREI), the UK property investment company focused on smaller lot-sizes, is pleased to announce that it has acquired a 47,882 sq ft industrial facility which is fully let to Container Components Limited with 20 years remaining on the lease for £3.5 million. The property produces an index linked passing rent of £227,440 per annum, reflecting a net initial yield1 of 6.10%, and is located two miles from junction 29 of the M1 near Chesterfield, Derbyshire. \n\n \n\nThe acquisition was funded from the Company’s existing debt facilities, increasing net gearing2 to 23.8% loan to value, which remains within the Company’s target range.\n\n \n\nThis acquisition increases the industrial weighting within the Company’s highly diversified portfolio of 165 properties to 38%, with the balance comprising 24% retail warehouse, 16% office, 11% high street retail and 11% other, all of which are in strong economic areas across the UK.\n\n \n\nCommenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s discretionary investment manager), said: “This well located, modern industrial asset has been acquired at an entry yield of 6.10% which is significantly above the market average for industrial assets. The property also benefits from five-yearly index linked rental increases which provide long-term inflation-adjusted income. The acquisition demonstrates our continued ability to source high quality assets on behalf of our shareholders which offer enhanced but secure income returns by focussing on smaller sized properties where there is reduced competition.”\n\n \n\n1 Reversionary rent divided by purchase price plus assumed purchasers’ costs...