Custodian Property sells vacant Solihull office for £1.4m

31st Oct 2024 10:43

(Sharecast News) - Custodian Property Income announced the sale of a vacant office unit in Solihull for £1.4m on Thursday, achieving a 33% premium over its valuation as of 30 June.

The London-listed real estate investment trust said the asset, acquired in early 2015, provided it with a stable income stream over the nine years of ownership, generating an average yield of approximately 7%.

Managing director Richard Shepherd-Cross noted that the decision to sell aligned with Custodian's strategy, as the property showed limited prospects for future rental growth.

"The sale demonstrates the continued demand for smaller lot sized regional assets, particularly from owner occupiers, and we expect to use the sale proceeds to repay variable rate debt, which will further reduce our interest costs," he said.

"It also allows the company to fund improvements to the remaining portfolio which aligns with our strategy of providing shareholders with strong income returns."

At 1039 GMT, shares in Custodan Property Income REIT were up 0.28% at 80.43p.

Reporting by Josh White for Sharecast.com.