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 22,720 sq ft car showroom in Stafford for £4.9 million, £1.15 million (31%) ahead of the 30 June 2021 valuation, representing a net initial yield1 of 5.8%.
The property is let to VW Group UK Limited and was purchased in July 2018 for £4.55 million. Following the disposal, net gearing2 has decreased to 18.5%.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s external fund manager), said:
“Having generated a good level of income during three years of ownership and with the current lease expiring in 2024, we accepted an offer from a special purchaser to crystallise a profit and be able to reinvest the sale proceeds in assets with better rental growth prospects.”
1 Passing rent divided by sale price plus estimated purchasers’ costs.
2 Gross borrowings less cash (excluding rent deposits and retentions) divided by last published property portfolio valuation.
