Business
Purchase of Property Portfolio - replacement
Purchase of Property Portfolio - replacement.
About this update from Custodian Property Income Reit Plc
[{"type":"text","content":"\n \nRNS Number : 9923K Custodian REIT PLC 06 January 2016 \n\n\n\n\n\n\n \n\n\n\n\n\n \nThe following replaces the Purchase of Property Portfolio announcement released on 5 January 2016. Reference to the Company's net borrowings following the acquisition should have read 20.7% loan to value rather than 22.2% loan to value. The amended announcement is detailed in full below. \n \n5 January 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 a £55.1 million portfolio of properties (\"the Portfolio\").\n \nThe Portfolio comprises four retail sites in Colchester, Guildford, Portsmouth and Winnersh, three industrial properties in Chepstow, Redditch and Warrington, and two offices in Edinburgh and West Malling, with an average lot size of £6.1 million. Occupiers include House of Fraser, Tesco, Reiss, Poundworld, Regus, Amco Services, Laura Ashley, H Samuel, Pets at Home and Wickes. \n \nThe Portfolio represents nine of the 11 properties in the 'Target Portfolio' described in the Company's November 2015 prospectus, with the Company having sub-sold the remaining two properties in the Target Portfolio, comprising an industrial unit in Norbiton and three shops with offices above in Richmond at prices of £5.8 million and £8.6 million respectively, reflecting a blended net initial yield of sub 5%. \n \nThe Portfolio's current passing rent of £3.68 million reflects a net initial yield of 6.32%, with an expected reversionary yield of 6.89%. Following acquisition of the Portfolio, the Company's average weighted unexpired lease term is 6.8 years.\n \nThe purchase price of £55.1 million was funded using the Company's existing cash and debt facilities, following an issue of new shares in December 2015, which raised £44.25 million (before costs and expenses). The Company's net borrowings following the acquisition have increased to 20.7% loan to value.\n \nCommenting on the transaction, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's discretionary investment manager), said:\n \n\"The Portfolio is an excellent fit with our investment...