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 31,062 sq ft retail warehouse unit in Galashiels for £4.5 million, £1.8 million (67%) ahead of the 30 June 2021 valuation, representing a net initial yield1 of 5.73%.
The property was purchased in May 2017 for £3.1m and has a current weighted average unexpired lease term (“WAULT”) of 3.3 years. Following the disposal, net gearing2 has decreased to 23.7%.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s external fund manager), said:
“This disposal to a special purchaser crystallises a significant profit on a unit with a relatively short WAULT and provides liquidity to add to the Company’s current pipeline of property acquisition opportunities.”
1 Passing rent divided by sale price plus estimated purchasers’ costs.
2 Gross borrowings less cash (excluding rent deposits and retentions) divided by last published property portfolio valuation.