28th Jan 2016 12:32
LONDON (Alliance News) - Custodian REIT PLC on Thursday said it has sold a purpose-built office on Madison Place Business Park in Manchester for GBP1.4 million, around GBP150,000 more than the value of the asset in the UK property investor's accounts on September 30, 2015.
Prior to marketing, the lease term with Central Manchester University Hospitals NHS Foundation Trust was extended to 10 years from four years.
The property was part of the initial portfolio acquired on the company's admission to the London Stock Exchange in 2014.
Custodian REIT said it intends to use the money from the sale to fund acquisitions.
"We are delighted to have crystallised a 12.5% valuation gain, following us pro-actively re-gearing the lease of this strong tenant. The property was slightly sub-scale and we do not anticipate this location experiencing significant rental growth in the medium term," Richard Shepherd-Cross, managing director of Custodian Capital Ltd, the company's external fund manager, said.
Shares in Custodian REIT were up 1.4% at 108.50 pence Thursday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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