Custodian Property Income REIT Acquires £22m Property Portfolio

Custodian Property Income REIT plc has announced an all-share acquisition of a £22.1m property portfolio from a family property company. This strategic transaction expands Custodian REIT’s portfolio with 28 small lot-size regional properties in the UK, adding £19.4m in investment properties and £2.7m in housing stock. The acquisition is expected to enhance earnings and potentially create value through portfolio management.

The properties acquired are primarily industrial, with strong income characteristics and a net initial yield of approximately 8.1%. The transaction structure also provides tax efficiencies and reduces Custodian REIT's loan-to-value and ongoing charges ratios. The deal involves issuing 22.9m new shares with an additional 1.7m shares expected upon completion of accounts.

The company sees this acquisition as part of its growth strategy, offering economic benefits and addressing succession and tax issues for the selling family. Custodian REIT aims for further portfolio management opportunities to drive value and diversification.