Custodian Property Income REIT has sold a vacant office unit in Solihull to an unnamed investor for £1.4m.
The REIT said the sale price represented a 33% premium to the 30 June 2024 valuation.
Richard Shepherd-Cross, managing director of Custodian Capital, said: “This office was acquired in early 2015 and has provided the company with a stable income stream over the nine years of ownership, delivering an average yield of circa 7%. Given limited opportunities for future rental growth and in-line with our strategy, we felt that now was the right time to sell and crystallise a profit for our shareholders.
“The sale demonstrates the continued demand for smaller lot sized regional assets, particularly from owner occupiers, and we expect to use the sale proceeds to repay variable rate debt, which will further reduce our interest costs. It also allows the company to fund improvements to the remaining portfolio which aligns with our strategy of providing shareholders with strong income returns.”
