Custodian REIT (LON:CREI) sold a 5,242 sq ft vacant children's day nursery in Basingstoke for £648,000 or £73,000 ahead of the last published valuation.
The property was part of the initial portfolio acquired on its admission to the London Stock Exchange in 2014, the UK property investment company said. The proceeds will fund new acquisitions.
Richard Shepherd-Cross, managing director of the trust’s manager Custodian Capital Limited said: "The children's day nursery sector has been adversely affected by COVID-19 and in the current market the asset is best suited for local residential development, demonstrated by sale proceeds exceeding valuation by 11%, which will be redeployed on investment property with greater prospects for income and capital growth."
Custodian REIT specialises in commercial properties under £10mln in value.