Business
New Letting
New Letting.
About this update from Custodian Property Income Reit Plc
[{"type":"text","content":"\n \nRNS Number : 6104D Custodian REIT PLC 08 July 2016 \n\n\n\n\n\n\n \n\n\n\n\n\n \n \n8 July 2016\n \nCustodian REIT plc\n \n(\"Custodian REIT\" or \"the Company\")\n \nNew Letting\n \nCustodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the letting of a property in its portfolio.\n \nThe Company has let a retail unit on High Street, Colchester to Metro Bank plc following the surrender of the existing lease, at a passing rent of £200,000 subject to upward only rent reviews, on a 25 year lease with a tenant's break option in year 15 (\"the New Letting\"). \n \nThe unit was acquired on 4 January 2016 as part of the Indigo Portfolio, let to Burton/Dorothy Perkins Properties Limited on a lease expiring on 24 June 2016, with passing rent of £145,600. \n \nThe New Letting is expected to result in a valuation uplift of circa £1.5 million.\n \nCommenting on the New Letting, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's discretionary investment manager), said:\n \n\"We are delighted to have completed this extremely positive asset management initiative which we identified during the Indigo Portfolio acquisition due diligence. The New Letting delivers a significant boost to the Company's net asset value (\"NAV\") whilst improving its lease expiry profile and securing another high quality tenant.\n \n\"The 'Brexit' vote, exacerbated by the largest Property Unit Trusts introducing a block on redemptions, has led to a heightened degree of uncertainty about the prospects for commercial property, particularly in Central London. Custodian REIT's performance is more closely linked to the underlying occupational property market than what is happening in capital markets. I believe a lack of supply, following many years of limited development, will continue to put pressure on rents to grow and positively impact occupancy rates in the diverse regional properties typical of the Custodian REIT portfolio. \n \n\"The New Letting demonstrates our focus on enhancing cash flow from the portfolio through careful asset management and we continue to work closely with tenants to extend leases and remove short-term risk from lease expiries. Following the New Letting, the...