Custodian REIT PLC (LSE:CREI) has offloaded an office property in Leicester for £2.8mln, a price in line with its most recent valuation.
The 16,941-square-foot building was included in the portfolio the regional property company acquired as part of its initial public offer in 2014.
It has been fully let since the IPO, delivering an average yield of 9% per year but has seen no rental or valuation growth over the period of ownership, a trend that is expected to continue, said Richard Shepherd-Cross, managing director of the investment trust’s fund manager, Custodian Capital.
“We expect to invest the sale proceeds in the company’s remaining assets which have greater prospects for income and capital growth, better supporting the board’s objective of increasing dividends in a sustainable way and enhancing the portfolio’s environmental credentials,” he said.