8th Nov 2022 13:03
Custodian REIT PLC - Leicester, England-based real estate investment trust - Sells an industrial unit in Kilmarnock, Scotland for GBP1.4 million, representing a 12% premium to the unit's valuation at June 30.
Explains that the environmental credentials of the warehouse and distribution unit no longer fit with the company's environmental, social, and governance objectives and that it was "not considered practical to mitigate these risks".
Richard Sherpherd-Cross, managing director of Custodian Capital Ltd, the firm's external fund manager, says: "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 [initial public offering] 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."
Current stock price: 88.06 pence, down 0.8% on Tuesday afternoon in London
12-month change: down 9.9%
By Heather Rydings; [email protected]
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