LONDON, UK: Custodian REIT, the UK property investment company, announced the disposal of a property from its portfolio.
The Company has sold a 31,062 sq ft retail warehouse unit in Galashiels for £4.5 million, £1.8 million (67%) ahead of the 30 June 2021 valuation, representing a net initial yield1 of 5.73%.
The property was purchased in May 2017 for £3.1m and has a current weighted average unexpired lease term (WAULT) of 3.3 years. Following the disposal, net gearing2 has decreased to 23.7%.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s external fund manager), said: “This disposal to a special purchaser crystallises a significant profit on a unit with a relatively short WAULT and provides liquidity to add to the Company’s current pipeline of property acquisition opportunities.”
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 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.