5 January 2016Custodian REIT acquires a £55.1 million portfolio of properties
Custodian REIT is pleased to announce the acquisition of a £55.1 million portfolio of properties (“the Portfolio”). Property purchase The 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. The 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%. The 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. The 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. Commenting on the transaction, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s discretionary investment manager), said: “The Portfolio is an excellent fit with our investment strategy, comprising smaller lot size, good quality, secondary office, retail and industrial assets diversified by tenant and region. I expect this substantial addition to Custodian REIT’s existing portfolio to present economies of scale and enhance returns to shareholders through the prompt deployment of proceeds from the recent share issue, improving dividend cover. The Portfolio offers medium-term income security together with the potential for a number of asset management opportunities identified during the due diligence process.” | Latest News29 Jan 2019 Custodian REIT reports unaudited net asset value as at 31 December 2018 19 Dec 2018 Custodian REIT acquires 14,926 sq ft Volkswagen car dealership in Loughborough 04 Dec 2018 Custodian REIT acquires 44,844 sq ft Retail Park in Weymouth 19 Nov 2018 Custodian REIT acquires the 43,000 sq ft Evesham Shopping Park 05 Nov 2018 Custodian REIT acquires a high street unit on The Grove in Stratford, East London ![]() |