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Custodian REIT raises £2.8mln from the disposal of an industrial warehouse unit in Westerham

The sum which was £0.5mln, or 23% ahead of the March 31, 2020, valuation of the property, represents a net initial yield of 4.50%

Custodian REIT -
Following the disposal, the group said its net gearing has decreased to 22.4%

Custodian REIT PLC (LON:CREI), the UK property investment company, has raised £2.8mln after the disposal of a property from its portfolio.

The company said it has sold a 20,280 square foot industrial warehouse unit in Westerham, Kent for the sum which was £0.5mln, or 23% ahead of the March 31, 2020 valuation of the property, representing a net initial yield of 4.50%.

READ: Custodian REIT focused on rent collections during coronavirus pandemic

It noted that the property was purchased in September 2016 for £1.6mln as part of a 10 property portfolio.

Following the disposal, the group said its net gearing has decreased to 22.4%.

Commenting on the sale, Richard Shepherd-Cross, managing director of Custodian Capital Limited – the REIT’s external fund manager - said:  "A special purchaser was identified for this property in 2019. The disposal completed at the price agreed before the (coronavirus) COVID-19 pandemic hit, reflecting a 4.50% net initial yield, which crystallised a profit and improved the Company's liquidity position.” 

“We expect the proceeds to be deployed on better yielding assets once markets stabilise," he added.

Quick facts: Custodian REIT

Price: 83.6 GBX

LSE:CREI
Market: LSE
Market Cap: £351.16 m
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