CUSTODIAN REIT PLC

Description

Custodian REIT plc is a UK-based Real estate investment trust (REIT) with portfolio that comprises of Offices, high-street retail, retail warehouse, Industrial and other properties that are predominantly let to institutional grade tenants across UK.  It was launched in 2014, as a main-market listed property investment company on the London stock exchange as LSE: CREI. The trust invests in the diversified range of sectors, geography and tenant and aims to provide its private and institutional investors with high and attractive level of income, capital growth and high and stable dividends from well diversified UK Real estate portfolio.  The trust invests in sectors like motor trade, leisure, restaurants, trade counter, hotel, health care, nursery, and others. Custodian capital limited is a property fund management business that is authorized and regulated by the Financial Conduct Authority and that act as the investment manager of the trust and is a subsidiary of Mattioli Wood plc, which is the UK’s leading and fastest growing consultancy in the provision of pensions and wealth management services.  The investment manager aims to advise the trust on the acquisition of potential properties for its portfolios and actively develop, manage and dispose properties in the portfolio.

The investment policy of the trust aims to invest in a diversifies portfolio of high quality UK commercial Real estate properties of £2-10 million; the portfolio should not comprises of investment greater than 50% in single property sector or region; it invests in properties with high residual values, regular income and has high demand by the occupiers, at the time of purchase no single occupier should account more than 10% of the total rent roll except for government body or department and in the case of a single tenant rated by Dun & Bradstreet with a credit risk score higher than 2, in such case the exposure to such single tenant may not exceed 5% of the total rent roll; it cannot undertake speculative development, save for refurbishment of existing holdings, but may invest in forward funding agreements or forward commitments of pre-let development where the company aims to own the completed development.

The maximum gearing shall not exceed 35% of the trust’s total assets at the time of borrowing aggregate market value of all the properties of the company and for medium term it should be maximum 25%, to mitigate market volatility; the trust reserve the right to use efficient portfolio management techniques and the un-invested cash, capital or assets may be invested on temporary basis on money market instrument, bonds, commercial papers, other debt obligation or government and public securities.