Custodian REIT announces the disposal of a property from its portfolio

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

The Company has sold a retail unit in Weston-super-Mare at auction for £0.7m, in line with the most recent valuation.  A five year lease renewal had recently been completed with Superdrug with annual rent decreasing from £124k to £60k.

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

“This asset was not aligned with the strategy of the Company as we did not anticipate rents recovering and continues our planned disposals programme of non-prime high street retail assets.  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.”