Custodian REIT PLC (LSE:CREI) said it sold an industrial unit in Milton Keynes at a 73% premium to its valuation on 31 March 2022.
The property investment company sold the 44,187 sq ft warehouse and distribution unit for £8.5mln.
The group bought the property for £2.1mln in January 2015, before investing a further £900,000 in refurbishments - which included re-cladding the exterior, restoring the yard and renovating the interior, according to a statement.
As a result, the property’s energy performance certificate rating went from an E to a C, which led to it being let at a higher rent to Saint Gobain Building Distribution for six years before an exercised break option allowed for a sale to a special purchaser.
“When the tenant exercised its break option we took the opportunistic decision to dispose of the property to a special purchaser,” said managing director of Custodian Capital Limited (LSE:CAPD) Richard Shepherd-Cross.
“This sale has allowed us to crystallise a significant profit for shareholders and further demonstrates the benefits of a smaller regional property strategy,” Shepherd Cross added.