Custodian REIT sells three properties – Custodian REIT has announced the disposal of three properties from its portfolio.
The Company has sold an 8,326 sq ft retail unit within a six unit block on High Street, Colchester for GBP4.25 million, GBP0.7 million ahead of the 30 June 2017 valuation. The unit was recently let to and refurbished by Metro Bank plc on a lease expiring in 2041 and its sale crystallises the value created by agreeing the new lease.
The Company has sold a 9,332 sq ft multi-tenanted retail parade on High Street, Redcar for GBP0.6 million, GBP0.1 million ahead of the 30 June 2017 valuation. This property was part of the initial portfolio acquired on the Company’s admission to the London Stock Exchange in 2014 (“the IPO Portfolio”) but the property was considered sub-scale within the portfolio and following an asset management program, the opportunity to sell at a price in excess of valuation was created.
The Company has sold a 15,330 sq ft multi-tenanted industrial estate on Brindley Road, Hinckley for GBP1.2 million, GBP0.2 million ahead of the 30 June 2017 valuation. This property was also acquired as part of the IPO Portfolio. Over the last two years rents have increased and all units have been let, securing a profit on exit.
The Company intends to use the proceeds from the disposals to fund acquisitions better aligned to its long term investment strategy.
Commenting on the disposals, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s external fund manager), said: “These disposals demonstrate our ongoing commitment to portfolio management, representing three examples of good asset management activities leading to the crystallisation of strong valuation gains. We intend to redeploy the sale proceeds on property with better income growth and capital growth potential.”
CREI : Custodian REIT sells three properties