Custodian Property Income REIT announced the disposal of a vacant office unit in Solihull for c. €2m, representing a 33% premium to the 30 June 2024 valuation.
Richard Shepherd-Cross, Managing Director of Custodian Capital Limited, said: “This office was acquired in early 2015 and has provided the Company with a stable income stream over the nine years of ownership, delivering an average yield of circa 7%. Given limited opportunities for future rental growth and in-line with our strategy, we felt that now was the right time to sell and crystallise a profit for our shareholders. The sale demonstrates the continued demand for smaller lot-sized regional assets, particularly from owner-occupiers, and we expect to use the sale proceeds to repay variable-rate debt, which will further reduce our interest costs. It also allows the Company to fund improvements to the remaining portfolio, which aligns with our strategy of providing shareholders with strong income returns.”
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