Custodian REIT has sold a 25,724 sq ft car dealership on Mallory Road, Peterborough for GBP2.75 million, GBP0.345 million ahead of the 31 December 2016 valuation. The property is let to Marshall Motor Group Limited on a lease expiring in 2019.
The property was purchased shortly after the company’s admission to the London Stock Exchange. They intend to use the proceeds from the disposal to fund acquisitions better aligned to Custodian’s long term investment strategy.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s external fund manager), said: “Having identified an owner-occupier to purchase the site and with the property believed to be over-rented, we were delighted to crystallise a 14.3% valuation gain on the disposal of the property. We expect to redeploy the sale proceeds on property with better short-term income growth and long-term capital growth potential.”
CREI : Custodian REIT sells Peterborough property