Custodian Property Income REIT PLC on Tuesday said it has completed the sale of an industrial unit in Weybridge for £6.0 million.
The real estate investment trust has also unconditionally exchanged on the disposal of a vacant industrial unit in Warrington for £9.0 million.
The Warrington disposal is expected to complete in mid-April.
The total disposals of £15.0 million will be used towards repaying the company’s existing revolving debt facility.
‘Whilst planning consent has been received to redevelop the Warrington site we believe that, due to a lack of occupier demand and the ability to crystallise a substantial profit for our shareholders, now is the best time to sell. Selling vacant property is particularly accretive to earnings by both saving void costs and reducing interest expense,’ said Richard Shepherd-Cross, managing director of Custodian Capital Ltd.
‘The Weybridge asset has provided a healthy level of income over its four years of ownership and having re-let the unit in 2022 at an increased level of rent, we believe future rental growth may not meet our income growth expectations going forwards so we have made the decision to sell.’
Shares in Custodian Property Income were up 0.3% to 81.60 pence each in London on Tuesday afternoon.
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