Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the disposal of four properties from its portfolio.
The Company has sold retail properties at auction in Chester, Scarborough, Bedford and Llandudno for an aggregate £1.6m, in line with the most recent valuations.
The properties were originally acquired within larger portfolios in 2014 and 2015. The Chester unit is currently vacant, the Scarborough and Bedford units are let on three-month rolling leases at below market rents and the Llandudno unit is significantly over-rented with expiry in May 2022. These disposals have reduced the Company’s high street retail sector weighting from 11% to 10%.
Commenting on the disposals, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s external fund manager), said:
“These assets were not aligned with the strategy of the Company as we did not anticipate future rental growth. We have already invested 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.”