• Debut acquisition from syndicated investment vehicles and fourth share-based transaction of a highly complementary portfolio with value creation potential
• Structure directly addresses challenges of succession
• Further demonstration of the Company’s ability to marry effectively its investment strategy and listed REIT structure to facilitate the acquisition of privately owned property portfolios using its scalable acquisition model and majority-share consideration:
  • Share register augmented by the sellers’ desire to retain ownership interests in the Company
  • Reduces the Company’s ongoing charges ratio and maintains loan-to-value around 25% target
  • Provides syndicated property investors with a liquid, institutionally managed alternative without the need for a cash sale
  • Meets sellers’ appetite to retain ongoing exposure to real estate within a larger, more diversified and professionally managed portfolio
  • Opportunity to enhance earnings per share and dividend cover as rental growth is captured, while increasing tenant diversification

Custodian Property Income REIT (LSE: CREI), which seeks to deliver an enhanced income return by investing in a diversified portfolio of smaller, regional properties with strong income characteristics across the UK, is pleased to announce the purchase of an £11.0m portfolio from the underlying investors across eight separate syndicated property investment vehicles managed by Lincoln Property Syndicates (“the Transaction”).  Consideration was calculated on an adjusted net asset value (“NAV”) for NAV basis and satisfied through:

• The issue of 10.6m new ordinary shares in the Company; and
• Cash consideration of £0.4m.

You can read the full update here.