Custodian REIT : Disposal of Property

28 March 2017

Custodian REIT plc

('Custodian REIT' or the 'Company')

Disposal of Property

Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the disposal of a property from its portfolio.

The Company has sold a 25,724 sq ft car dealership on Mallory Road, Peterborough for £2.75 million, £0.345 million ahead of the 31 December 2016 valuation. The property is let to Marshall Motor Group Limited on a lease expiring in 2019.

The property was purchased shortly after the Company's admission to the London Stock Exchange. The Company intends to use the proceeds from the disposal to fund acquisitions better aligned to its long term investment strategy.

Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's external fund manager), said:

'Having identified an owner-occupier to purchase the site and with the property believed to be over-rented, we were delighted to crystallise a 14.3% valuation gain on the disposal of the property. We expect to redeploy the sale proceeds on property with better short-term income growth and long-term capital growth potential.'

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Notes to Editors

Custodian REIT plc is a UK real estate investment trust, which listed on the main market of the London Stock Exchange on 26 March 2014. Its portfolio comprises properties predominantly let to institutional grade tenants on long leases throughout the UK and is characterised by properties with individual property values of less than £10 million at acquisition.

The Company offers investors the opportunity to access a diversified portfolio of UK commercial real estate through a closed-ended fund. By targeting sub £10 million lot size, regional properties, the Company intends to provide investors with an attractive level of income with the potential for capital growth.

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

For more information visitwww.custodianreit.comandwww.custodiancapital.com.