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 retail unit in Nottingham at auction for £0.7m, in line with the most recent valuation.
A lease renewal had recently been completed with The White Company on a five year lease with 2.5 year tenant only break option with annual rent decreasing from £140k to £65k. The disposal has reduced the Company’s high street retail sector weighting by income from 10% to 9%.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s external fund manager), said:
“This asset was not aligned with the strategy of the Company as we did not anticipate future rental recovery. We expect to invest 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.”