Custodian REIT has sold the only high street shopping centre in its portfolio for £9.3mln, a roughly 3.5% premium to its price on acquisition.
The site in Gosforth was part of the portfolio of DRUM Income Plus REIT, which was acquired by Custodian in November 2021
Richard Shepherd-Cross, Custodian’s manager, said: “Shopping centres as a sector have not performed well since the COVID-19 pandemic and do not fit comfortably within our investment objectives of selecting high quality, well located regional properties in areas where future rental growth is underpinned by strong supply/demand fundamentals.
“The asset management work completed since acquisition and the accretive terms of the DRUM Income Plus REIT plc purchase have allowed us to achieve a profitable sale despite current market uncertainty.
“This disposal provides additional capital for our programme of improving assets we feel will better capture tenant demand over the long term as well as enhancing their environmental credentials.”