Custodian REIT PLC (LON:CREI) has sold a 22,000 square-foot industrial unit in Southwark, south London for £12mln, some £4.4mln more than what the UK property investor valued it in June.
The warehouse was bought back in 2014 for £3.1mln as part of the initial portfolio Custodian acquired on its admission to the London Stock Exchange. The company, which is valued at £500mln, plans to use the proceeds to fund acquisitions that will enhance dividend cover.
“The lack of available investment stock in Central London combined with strong investment demand and a recent, substantial rental increase has led to significant valuation increases,” said Richard Shepherd-Cross, managing director of Custodian Capital, the firm’s external fund manager.
“Over and above this, redevelopment potential and identification of a special purchaser has delivered a substantial profit over and above the most recent valuation.”
Shares were down 121.8p in late afternoon trading on Friday.