Custodian REIT PLC (LSE:CREI) said it sold a Volkswagen car showroom in Derby for 26% more than its March valuation.
The £5.6mln received for the 24,178 sq ft disposal represents a net initial yield of 5.7% and cuts the company’s net gearing to 20.5%.
“This asset has provided a healthy level of income over our five years of ownership and is being sold to a ‘special purchaser’ at a significant profit,” said Richard Shepherd-Cross, managing director of Custodian Capital, the company’s external fund manager.
“We have a strong pipeline of assets on which to redeploy the proceeds of this sale with better rental growth and asset management prospects.”
Recent acquisitions have included a £3.65mln purchase of two retail units on Winchester High Street at a combined net yield of 6.4%; a £7.5mln industrial facility yielding 5.5% in Grangemouth, Scotland; following the £1.3mln sale of a retail property in Norwich in March.