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 5,242 sq ft vacant children’s day nursery in Basingstoke for £648k, £73k ahead of the last published valuation.
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 stated investment strategy.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s external fund manager), said:
“The children’s day nursery sector has been adversely affected by COVID-19 and in the current market the asset is best suited for local residential development, demonstrated by sale proceeds exceeding valuation by 11%, which will be redeployed on investment property with greater prospects for income and capital growth.”