Custodian REIT plc (CREI)
21 May 2020
Custodian REIT plc
("Custodian REIT" or the "Company")
Disposal of Property
Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the disposal of a property from its portfolio.
The Company has sold a 20,280 sq ft industrial warehouse unit in Westerham for £2.8 million, £0.5 million (23%) ahead of the 31 March 2020 valuation, representing a net initial yield1 of 4.50%.
The property was purchased in September 2016 for £1.6 million as part of a 10 property portfolio. Following the disposal, net gearing2 has decreased to 22.4%.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's external fund manager), said:
"A special purchaser was identified for this property in 2019. The disposal completed at the price agreed before the COVID-19 pandemic hit, reflecting a 4.50% net initial yield, which crystallised a profit and improved the Company's liquidity position. We expect the proceeds to be deployed on better yielding assets once markets stabilise."
1 Passing rent divided by sale price plus estimated purchasers' costs.
2 Gross borrowings less cash (excluding rent deposits and retentions) divided by last published property portfolio valuation.
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Notes to Editors
Custodian REIT plc is a UK real estate investment trust, which listed on the main market of the London Stock Exchange on 26 March 2014. Its portfolio comprises properties predominantly let to institutional grade tenants on long leases throughout the UK and is characterised by properties with individual values of less than £10 million at acquisition.
The Company offers investors the opportunity to access a diversified portfolio of UK commercial real estate through a closed-ended fund. By targeting sub £10 million lot size, regional properties, the Company intends to provide investors with an attractive level of income with the potential for capital growth.
Custodian Capital Limited is the discretionary investment manager of the Company.
|OAM Categories:||3.1. Additional regulated information required to be disclosed under the laws of a Member State|
|EQS News ID:||1052293|
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