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 high street retail unit in Norwich for £1.305m, in line with the most recent valuation.
The property was originally acquired as part of the IPO portfolio in 2014. The unit is currently let to Specsavers with 7.7 years to expiry. The disposal forms part of the Company’s strategy of reducing exposure to secondary high street retail assets.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s external fund manager), said:
While this asset has provided secure income to date, we believe it is no longer aligned with the strategy of the Company as we anticipate future rental decline and increased vacancy in this micro location. We expect to invest the sale proceeds in higher quality assets with greater prospects for income and capital growth, better supporting the Board’s objective of increasing dividends in a sustainable way.”