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 two office buildings in Cheadle for an aggregate £6.9m.

5500 Lakeside, which is 66% let, was sold for £4.0m in line with the 31 December 2024 valuation, while the disposal of Wienerberger House, which is fully let, was achieved at a 10% premium to the valuation at the same date.  The assets had both been acquired as part of portfolio acquisitions in November 2021 and May 2016, respectively.

Commenting on the disposals, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited, said: “Whilst we have received a healthy level of income across both properties, due to market sentiment in the out-of-town office sector, we believe that there is limited scope for future rental growth and we felt that now is the right time to sell.  The transactions once again prove our ability to make sales at or above book valuation and we expect to use the proceeds to repay variable rate debt, aligning with our strategy of providing shareholders with strong income returns.”