Custodian Property Income REIT has sold an office building in Glasgow to a private investor for £6m.
Monteith House, which is located on George Square in Glasgow city centre, is fully let to a single tenant with an annual passing rent of £0.5m.
The sale price of the asset, which was acquired as part of the DRUM Income Plus portfolio acquisition in November 2021, represents a 24% premium to the 30 September 2025 valuation.
Richard Shepherd-Cross, managing director of Custodian Capital, said: “We have received a healthy level of income on this property for the period of our ownership. With less than five years remaining on the current lease and some uncertainty regarding renewal with the existing tenant, we believe that without significant capital expenditure, this asset has limited scope for future rental growth.
“Due to these factors, we felt that now is the right time to sell and crystallise a 24% premium to the 30 September 2025 valuation, demonstrating our ability to complete sales above book valuation, as well as the continued demand for well located office assets. We expect to use the proceeds to repay variable rate debt, aligning with our strategy of providing shareholders with strong income returns.”
