Custodian REIT PLC (LSE:CREI) has exchanged on the sales of a group of industrial properties for £23.4mln, with completion due on 29 September 2021.
The portfolio comprises five sites in Gateshead, Stockton-on-Tees, Warrington, Stone and Christchurch with a current passing rent of £1.4mln.
The agreed sale price is £4.07mln (21%) above the portfolio's 31 March 2021 valuation and £2.13mln (10%) above the June 2021 value.
On completion, the disposals will add 0.5p to the 30 June 2021 NAV per share said the statement.
Richard Shepherd-Cross, managing director of the REIT’s manager Custodian Capital Limited (LSE:CAPD, FRA:C8D), added: "Investment demand and pricing for industrial assets are both at record levels, so we believe now is the best time to sell to capitalise on the current, favourable market dynamics to secure a significant profit.
"While the short-term prospects for each of the properties in the portfolio remain robust, over the medium term we consider them as non-core assets due to a combination of age, construction, location and site layout limiting future rental growth or demanding significant capital expenditure.
"We have agreed a delayed completion to sustain dividend cover while we re-deploy proceeds which we have already begun to invest pre-emptively in higher-quality assets.”