(Corrects that the showroom is let to Volkswagen AG, not sold to it. Buyer is not disclosed.)
Custodian REIT PLC on Wednesday said it sold a 24,178 square foot car showroom in Derby to an undisclosed ‘special purchaser’.
The £5.6 million sale was £1.2 million, or 26%, ahead of its March 31 valuation, the Leicester, England-based real estate investment trust said. The price tag represents a 5.7% net initial yield.
The showroom is let to German’s Volkswagen AG.
‘This asset has provided a healthy level of income over our five years of ownership and is being sold to a ’special purchaser’ at a significant profit. We have a strong pipeline of assets on which to redeploy the proceeds of this sale with better rental growth and asset management prospects,’ said Richard Shepherd-Cross, managing director of Custodian REIT’s external fund manager, Custodian Capital Ltd.
Custodian REIT shares were 1.4% higher at 102.18 pence each in London on Wednesday morning.
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