Custodian Property Income REIT sells retail unit 35% ahead of valuation

Custodian Property Income REIT (LSE: CREI), which seeks to deliver a strong income return by investing in a diversified portfolio of smaller regional properties across the UK, is pleased to announce the disposal of a high street retail unit in Bury St Edmunds at auction for £0.54m, £0.14m (35%) ahead of valuation.

Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s external fund manager), said: “Having recently increased the lease term by five years but with annual rent decreasing from £53k to £40k, now was the right time to sell and crystallise a valuation uplift.  We did not anticipate rents recovering and this disposal continues our planned programme of selling non-prime high street retail assets.  We expect to recycle the sale proceeds into improvements to the remaining portfolio which we believe will better support the strategy of providing our shareholders with strong income returns.”