Acquisition

6 January 2015

Custodian REIT plc

("Custodian REIT" or the "Company")

Purchase of Property

Custodian REIT (LSE: CREI), 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'sexisting 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."

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Notes to Editors

Custodian REIT plc is a UK real estate investment trust ("REIT") listed on the London Stock Exchange. The Company launched on 26 March 2014, acquiring a portfolio of £95 million of UK commercial property. This was sourced from an existing portfolio of 48 properties held by clients of Mattioli Woods plc in a syndicated structure. The diverse portfolio consisted of properties let to institutional grade tenants on long leases throughout the UK.

The Company raised gross proceeds of £55 million through an initial public offering and raised a further £25 million via a subsequent placing. It invests in a diversified portfolio of UK commercial properties to achieve its investment objective of providing shareholders with an attractive level of income together with the potential for capital growth through a closed-ended fund.

The target portfolio is characterised by small lot sizes with individual property values of less than £7.5 million at acquisition.

Custodian Capital Limited is the discretionary investment manager of the Company.

For more information visit www.custodianreit.com and www.custodiancapital.com.