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 42,289 sq ft car showroom in Stockport for £9.0 million, £1.4 million (18%) ahead of the 30 June 2021 valuation, representing a net initial yield1 of 6.7%.
The property is let to Williams BMW and Mini and was purchased in July 2017 for £8.8 million. Following the disposal, net gearing2 has decreased to 19.5%.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s external fund manager), said:
“This asset has provided a healthy level of income over our four years of ownership, during which we completed the asset management initiatives identified on acquisition of re-basing the rent and transferring the lease to a much stronger group covenant.”
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.