Custodian Property Income REIT plc

Disposal of Properties

Custodian Property Income REIT plc (CREI) Custodian Property Income REIT plc: Disposal of Properties 02-Apr-2024 / 07:00 GMT/BST

 

2 April 2024

 

Custodian Property Income REIT plc

 

(“Custodian Property Income REIT” or the “Company”)

 

Disposal of Properties

 

Custodian Property Income REIT (LSE: CREI), which seeks to deliver a strong income return by investing in a diversified portfolio of smaller regional properties across the UK, is pleased to announce that it has completed the sale of an industrial unit in Weybridge for £6.0m and unconditionally exchanged on the disposal of a vacant industrial unit in Warrington for £9.0m (“the Disposals”).

 

The Disposals were previously disclosed in the Company’s announcement of 28 February 2024, with the respective sales prices representing premiums to 31 December 2023 valuations of 5.2% (£0.3m) and 61% (£3.4m).

 

The Warrington disposal is expected to complete in mid-April 2024 and total proceeds from the Disposals of £15.0m will be used towards repaying the Company’s existing revolving debt facility, reducing LTV by circa 2%.

 

Commenting on the Disposals, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s external fund manager), said:

 

“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.