Custodian REIT PLC (LSE:CREI) has sold a car showroom property from its portfolio for £4.9mln to Volkswagen's UK arm.
The UK property investment company said it sold the 22,720 sq ft showroom in Stafford for a price that was £1.15mln, or 31%, ahead of a valuation carried out on 30 June, representing a net initial yield of 5.8%.
VW Group UK had been renting the property, which was purchased in July 2018 for £4.55mln.
Following the disposal, Custodian REIT's net gearing has decreased to 18.5%.
Richard Shepherd-Cross, managing director of fund manager Custodian Capital, said: "Having generated a good level of income during three years of ownership and with the current lease expiring in 2024, we accepted an offer from a special purchaser to crystallise a profit and be able to reinvest the sale proceeds in assets with better rental growth prospects."