Custodian REIT pursues disposals to rejig portfolio – Custodian REIT (CREI), the UK property investment company, has announced the disposal of a property from its portfolio.
It has sold a 39,279 sq ft city centre office and retail unit in Edinburgh for £9.1m, in line with the 30 June 2019 valuation, having acquired the property as part of a portfolio in January 2016. CREI says that following the disposal, net gearing has decreased to 21.1%.
Commenting on the disposal Richard Shepherd-Cross, managing director of Custodian Capital Limited (the CREI’s manager), said: “Following the completion of a refurbishment and various asset management initiatives, which increased the weighted average unexpired lease term to expiry to 8.7 years, we anticipated limited opportunities for future rental growth and believe the disposal proceeds can be redeployed on property with better income and capital growth prospects.”
CREI’s portfolio comprises properties predominantly let to institutional grade tenants throughout the UK, principally characterised by properties with individual values of less than £10m at acquisition.By principally targeting sub £10m lot size regional properties, the company intends to provide investors with an attractive level of income and the potential for capital growth.
CREI: Custodian REIT pursues disposals to rejig portfolio
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