Custodian REIT PLC (LSE:CREI), the UK property investment company, has sold a retail warehouse unit in Galashiels, Scotland for 67% more than its book price.
The 31,062 square foot unit was sold for £4.5mln, £1.8mln ahead of the 30 June 2021 valuation, representing a net initial yield of 5.73%.
The property was purchased in May 2017 for £3.1mln.
Following the disposal, Custodian’s net gearing has decreased to 23.7%.
“This disposal to a special purchaser crystallises a significant profit on a unit with a relatively short WAULT [weighted average unexpired lease term] and provides liquidity to add to the company's current pipeline of property acquisition opportunities,” said Richard Shepherd-Cross, the managing director of Custodian Capital Limited (LSE:CAPD, FRA:C8D), the company’s external fund manager.