Custodian REIT has sold a 22,286 sq ft public house on Palmerston Road, Southsea for GBP1.67 million, GBP0.19 million ahead of the 31 December 2016 valuation. The property is let to JD Wetherspoon plc on a lease expiring in 2040.
The property was part of a portfolio acquired in August 2014. The Company intends to use the proceeds from the disposal to fund acquisitions better aligned to its long term investment strategy.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s external fund manager), said: “We are delighted to crystallise a 12.8% valuation. Despite the long-term lease, the yield is significantly below target and we believe the disposal proceeds can be redeployed on property with a better income yield and the potential for capital growth.”
CREI : Custodian REIT sells Wetherspoon in Southsea