Custodian REIT PLC (LON:CREI), the UK property investment company, has sold a retail unit in Nottingham at auction for £0.7mln.
The real estate investment trust (REIT) said the price gained at auction was in line with the most recent valuation.
A lease renewal on the sold property had recently been completed with The White Company on a five-year lease with a 2.5-year tenant-only break option with annual rent decreasing from £140,000 to £65,000, Custodian revealed. The disposal has reduced the company's high street retail sector weighting by income from 10% to 9%.
"This asset was not aligned with the strategy of the company as we did not anticipate future rental recovery. We expect to invest the sale proceeds in higher-quality assets with greater prospects for income and capital growth, better supporting the board's objective of increasing dividends in a sustainable way,” said Richard Shepherd-Cross, the managing director of Custodian Capital Ltd, the REIT’s external fund manager.