16th May 2016 07:09
LONDON (Alliance News) - Custodian REIT PLC on Monday said it has sold a purpose-built student residential building in Lenton, Nottingham for more than its March 31 valuation at GBP1.2 million, reducing its net borrowings.
The UK property investment company said the student residential building was fully let for the next academic year prior to marketing. The property had been part of the initial portfolio acquired when it was admitted to the London Stock Exchange in 2014, Custodian added.
Following the property's disposal, as well as the placing of new shares announced on Friday, Custodian said its net borrowings decreased to 12.2% loan to value.
Custodian said it intends to use the proceeds from the disposal to fund acquisitions "better aligned to its stated investment strategy".
"Due to the size and nature of use, this asset was identified as being non-core within our ongoing strategy. Over the last two years we have secured rental growth and now a profit on exit. We believe the proceeds can be reinvested to produce an enhanced income return which is a stronger fit with the balance of the portfolio and better supports dividends and future dividend growth," said Richard Shepherd-Cross, managing director of Custodian Capital Ltd, Custodian REIT's fund manager.
By Hannah Boland; [email protected]; @Hannaheboland
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