6 January 2015

Custodian REIT purchases 16,075 sq ft supermarket in Torpoint, Cornwall

Custodian REIT, the UK property investment company, is pleased to announce a further property purchase, bringing the total funds invested following its initial placing and admission to the Official List on 26 March 2014 to £84.3 million.

The Company has acquired a 16,075 sq ft supermarket in Torpoint, Cornwall let to Sainsbury’s Supermarkets Limited. The unit is let on an eight year lease, expiring on 14 December 2022 with a passing rent of £217,500 per annum, reflecting a net initial yield of 6.75%.

The agreed purchase price of £3.05 million was funded from the Company’s existing facilities, with total funds of £14.7 million now deployed from the Company’s revolving credit facility. Borrowings have increased to 13.6% loan to value, in line with the stated investment strategy of a target gearing ratio of 25% loan to value.

Commenting on the acquisition, Richard Shepherd-Cross , Managing Director of Custodian Capital Limited (the Company’s external fund manager), said:

“We are delighted to have completed this off-market transaction to secure a supermarket in a very competitive sector of the property market. The unit is the only large format food store in Torpoint which has a catchment population of over 8,000 residents, separated from Plymouth by the river Tamar and linked by the Torpoint Ferry. The acquisition adds a high quality tenant and further diversifies the Company’s retail portfolio.”