Custodian REIT has disposed of an industrial unit in Kilmarnock, at auction, for £1.4m, at a 12% premium to its 30 June 2022 valuation.
The REIT decided to sell the 18,424 sq ft warehouse and distribution unit as its environmental credentials ‘no longer fit with the company’s ESG objectives and it was not considered practical to mitigate these risks’.
Richard Shepherd-Cross, managing director of Custodian Capital, the company’s external fund manager, said: “The sale of this industrial unit at a premium to valuation demonstrates the ongoing liquidity in the market for smaller lot sized commercial real estate, underscoring our investment thesis.
“Having acquired this property as part of our IPO portfolio eight years ago and having recently increased the lease term until 2032, we felt that now was an opportune time to crystallise the value we have created.
“The proceeds of the disposal will be recycled into identified improvements to the remaining portfolio which we believe will be more accretive and better support the strategy of providing shareholders with strong income returns.”
