Custodian REIT PLC (LON:CREI), the UK property investment company, has sold an industrial warehouse in Wolverhampton for £6.6mln.
The sale price was in line with the valuation at the end of June, representing a net initial yield of 7.27%.
The 119,600 square foot property was purchased for £4.5mln in June 2016.
Following the disposal, the investment trust’s net gearing has eased to 21.3%. The company will use the proceeds from the sale to finance acquisitions of properties that it believes fit in better with its stated investment strategy.
"Our ongoing commitment to portfolio management has led to a 42% rental increase and a significant valuation increase since acquisition. While the property has delivered consistent cash flow, we felt that with four years remaining on the lease and current market sentiment to the industrial sector, the time was right to dispose of the asset and crystallise the 47% valuation gain since acquisition," said Richard Shepherd-Cross, the managing director of Custodian Capital, the company’s external fund manager.