Custodian REIT is pleased to announce the disposal of a property from its portfolio.
The Company has sold a 9,144 sq ft car dealership on Coventry Road, Solihull for £1.88 million, £0.35 million ahead of the 30 September 2016 valuation. The property is let to Allen Ford (UK) Limited on a lease expiring in 2021.
The property was part of the initial portfolio acquired on the Company’s admission to the London Stock Exchange in 2014. The Company intends to use the proceeds from the disposal to fund acquisitions better aligned to its long term investment strategy.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s external fund manager), said:
“Having identified an owner-occupier to purchase the site, we were delighted to crystallise a 22.9% valuation gain on the disposal of the property. We believed the property to be over-rented and expect to redeploy the sale proceeds on property with better short-term income growth and long-term capital growth potential.”