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Custodian REIT acquires pair of DFS retail ware...
Custodian REIT acquires pair of DFS retail ware....
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 pair of DFS retail warehouse assets for £9 million20-Jul-2022 / 07:00 GMT/BSTDissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.The issuer is solely responsible for the content of this announcement.\n\n\n\n \n\n\n \n\n20 July 2022\n\n \n\n \n\nCustodian REIT plc\n\n \n\n(“Custodian REIT” or the “Company”)\n\n \n\nCustodian REIT acquires pair of DFS retail warehouse assets for £9 million\n\n \n\nCustodian REIT (LSE: CREI), the UK property investment company focused on smaller lot-sizes, is pleased to announce two further property purchases.\n\n \n\nThe Company has acquired two retail warehouses in Measham, Leicestershire, and Droitwich, Worcestershire, occupying an aggregate 40,077 sq ft. The units are both let to DFS Furniture with a weighted average unexpired term to first break or expiry of 8.0 years and an aggregate passing rent of £894,103 per annum, reflecting a net initial yield1 of 9.43%.\n\n \n\nThe agreed purchase price of £8.9 million was funded from the Company’s existing debt resources, increasing net gearing2 to 23.4% loan to value, which remains within the Company’s target range. \n\n \n\nFollowing this acquisition the Company’s diversified portfolio’s weighting to retail warehouses has increased to 24%, with 38% industrial, 16% office, 11% high street retail and 11% other, comprising 164 properties located 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:\n\n \n\n“These high yielding assets let on long-term leases to a strong covenant are a great addition to our portfolio. Retail warehouses continue to demonstrate their relevance and appeal alongside the continued rise of e-commerce, with one out of three sofas sold in the UK purchased in-store, while the ‘halo’ effect of a physical store supporting local online purchases is particularly strong for furniture.\n\n \n\n“The attractive entry yield will be accretive to dividend capacity over the medium term. As bricks and mortar retail undergoes a renaissanc...