13th Jan 2015 09:30
LONDON (Alliance News) - Custodian REIT PLC Tuesday said it has disposed of two properties from its portfolio at a combined price of GBP1.8 million, with the cash received from the sales to fund further acquisitions which "better fit" the company's investment strategies.
In a statement, the UK property investment company said it sold the property with the higher valuation, a 36,924 square foot hybrid office building in Nottingham, for GBP1.5 million, ahead of the GBP1.24 million valuation at the end of September last year.
The lease on the property is due to expire on October 15, and the tenant has confirmed its intention not to renew the lease, Custodian REIT said.
In addition, Custodian REIT disposed of a three storey, 3,249 square foot office building, also in Nottingham, for GBP0.30 million, in line with its valuation at the end of September.
"The Abbeyfield Road property was approaching the end of the current lease and our long-term view is that the building is not suitable for modern office demands. In anticipation of an extended period of void without income, we have accepted an offer for the property significantly ahead of open market value," Richard Shepherd-Cross, managing director of Custodian Capital Ltd, the company's external fund manager, said in a statement.
"The Lace Market property was vacant and subscale for the company's portfolio. A disposal to an owner-occupier has therefore been agreed at valuation," Shepherd-Cross added.
Custodian REIT shares were up 0.1% at 107.05 pence on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Cust Prop Inc