5th Jan 2016 15:50
LONDON (Alliance News) - UK property investor Custodian REIT PLC on Tuesday said it paid GBP55.1 million for a portfolio of property assets comprising warehouses, retail assets and offices, while also saying it has issued shares to satisfy investor demand.
The company has acquired 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.
The current passing rent on the portfolio is around GBP3.7 million per year, reflecting a net initial yield on the purchase of 6.3%.
"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," said Richard Shepherd-Cross, managing director of Custodian Capital Ltd, which manages the trust.
Also Tuesday, Custodian said it issued 1.3 million shares at a price of 106.75 pence on Tuesday, raising just shy of GBP1.4 million before costs and expenses.
Custodian REIT shares were trading flat on Tuesday afternoon at 107.25 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance. Updated by Joshua Warner; [email protected]; @JoshAlliance
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