Custodian Property Income REIT (CREI) has sold an industrial unit in Milton Keynes for £8m to an unnamed purchaser, in a deal representing a 9.5% – or £0.7m – premium to the 30 September 2023 valuation.
Richard Shepherd-Cross, managing director of Custodian Capital – the REIT’s external fund manager – said: “During our nine years of ownership, we were able to generate a healthy and growing level of income from this asset. We made the decision to crystallise a profit for our shareholders and we expect to use the sale proceeds towards repaying the company’s existing revolving debt facility. This will further reduce our interest costs and allow the company to fund future improvements to the remaining portfolio.”
Last week, the boards of Custodian Property Income REIT (CREI) and abrdn Property Income Trust (API) revealed they had agreed the terms of an all-share merger, which will see CREI acquire the entire issued and to be issued share capital of API. The merger will create a REIT with a combined portfolio value in excess of £1bn.
