DJ Custodian REIT plc: Disposal of Properties
Custodian REIT plc (CREI)
Custodian REIT plc: Disposal of Properties
30-Jul-2021 / 07:00 GMT/BST
Dissemination 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.
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30 July 2021
Custodian REIT plc
("Custodian REIT" or the "Company")
Disposal of Properties
Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce it has unconditionally exchanged
on the disposal of a portfolio of properties ("the Portfolio") for GBP23.355 million, with completion due on 29 September
2021.
The Portfolio comprises five industrial sites in Gateshead, Stockton-on-Tees, Warrington, Stone and Christchurch with a
current passing rent of GBP1.4 million. The properties within the Portfolio were acquired either in the seed portfolio
at IPO or within subsequent portfolio acquisitions.
The agreed sale price of GBP23.355m is GBP4.07m (21%) above the Portfolio's 31 March 2021 valuation and GBP2.13m (10%) above
the Portfolio's 30 June 2021 valuation and will add 0.5p1 to the 30 June 2021 NAV per share on scheduled completion.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's
external fund manager), said:
"Investment demand and pricing for industrial assets are both at record levels, so we believe now is the best time to
sell to capitalise on the current, favourable market dynamics to secure a significant profit.
"While the short-term prospects for the each of the properties in the Portfolio remain robust, over the medium term we
consider them as non-core assets due to a combination of age, construction, location and site layout limiting future
rental growth or demanding significant capital expenditure.
"We have agreed a delayed completion to sustain dividend cover while we re-deploy proceeds which we have already begun
to invest pre-emptively in higher quality assets with greater prospects for income and capital growth, better
supporting the Board's objective of increasing dividends in a sustainable way."
1 Based on the current issued share capital of 420,603,344 shares.
- Ends -
For further information, please contact:
Custodian Capital Limited
Richard Shepherd-Cross / Ed Moore / Ian Mattioli MBE Tel: +44 (0)116 240 8740
www.custodiancapital.com
Numis Securities Limited
Hugh Jonathan Tel: +44 (0)20 7260 1000
www.numiscorp.com
Camarco
Ed Gascoigne-Pees Tel: +44 (0)20 3757 4984
www.camarco.co.uk
Notes to Editors
Custodian REIT is a UK real estate investment trust with a portfolio comprising properties predominantly let to institutional grade tenants throughout the UK, principally characterised by properties with individual values of less than GBP10m at acquisition.
The Company offers investors the opportunity to access a diversified portfolio of UK commercial real estate through a closed-ended fund. By principally targeting sub GBP10m lot size, regional properties, the Company intends to provide investors with an attractive level of income and the potential for capital growth, becoming the REIT of choice for private and institutional investors seeking high and stable dividends from well-diversified UK real estate.
Custodian Capital Limited is the discretionary investment manager of the Company.
For more information visit www.custodianreit.com and www.custodiancapital.com. -----------------------------------------------------------------------------------------------------------------------
ISIN: GB00BJFLFT45 Category Code: DIS TIDM: CREI LEI Code: 2138001BOD1J5XK1CX76 Sequence No.: 118817 EQS News ID: 1222880 End of Announcement EQS News Service =------------------------------------------------------------------------------------ Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1222880&application_name=news
(END) Dow Jones Newswires
July 30, 2021 02:00 ET (06:00 GMT)
