Business
Purchase of Property Portfolio
Purchase of Property Portfolio.
About this update from Custodian Property Income Reit Plc
[{"type":"text","content":"\n \nRNS Number : 7476B Custodian REIT PLC 21 June 2016 \n\n\n\n\n\n\n \n\n\n\n\n\n \n \n21 June 2016\n \nCustodian REIT plc\n \n(\"Custodian REIT\" or \"the Company\")\n \nPurchase of Property Portfolio\n \nCustodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the acquisition of an £11.5 million portfolio of three properties (\"the Portfolio\").\n \nThe Portfolio comprises:\n \n· 25,471 sq ft office on Pegasus Business Park, Castle Donington, adjacent to East Midlands Airport and Junction 23A of the M1, let to National Grid plc with an unexpired lease term of 6.2 years;\n· 16,470 sq ft office in Cheadle, Greater Manchester, at Junction 3 of the M60 and nine miles from Manchester Airport, let to Wienerberger Limited with an unexpired lease term of 2.1 years; and\n· 119,600 sq ft industrial unit in Wolverhampton, four miles from Junction 1 of the M54, let to Assa Abloy Limited with an unexpired lease term of 2.1 years.\n \nThe Portfolio's current passing rent of £0.99 million reflects a net initial yield of 8.04%, with an expected reversionary yield of 9.63%. \n \nThe purchase price of £11.5 million was funded from the Company's cash resources, following the drawdown of a new £45 million term loan on 6 June 2016. Net gearing1 following the acquisition has increased to 14.9%.\n \nCommenting on the transaction, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's discretionary investment manager), said:\n \n\"We are very pleased to have secured the Portfolio which is well aligned to our investment strategy, comprising good quality, smaller lot size, regional office and industrial assets. The properties are single let and occupied by strong tenants that are committed to the locations. The Portfolio also offers the potential for proactive asset management, with a number of opportunities identified and explored with stakeholders during the due diligence process.\"\n1 Gross borrowings less unrestricted cash divided by property portfolio valuation.\n\n-Ends-\n \nFor further information, please contact:\n \n\n\n\n\nCustodian Capital Limited\n\n\n \n\n\n\n\nRichard Shepherd-Cross / Nathan Imlach...