Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the disposal of a property from its portfolio.

The Company has sold a 22,720 sq ft car showroom in Stafford for £4.9 million, £1.15 million (31%) ahead of the 30 June 2021 valuation, representing a net initial yield1 of 5.8%.

The property is let to VW Group UK Limited and was purchased in July 2018 for £4.55 million. Following the disposal, net gearing2 has decreased to 18.5%.

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

"Having generated a good level of income during three years of ownership and with the current lease expiring in 2024, we accepted an offer from a special purchaser to crystallise a profit and be able to reinvest the sale proceeds in assets with better rental growth prospects."

1 Passing rent divided by sale price plus estimated purchasers' costs.

2 Gross borrowings less cash (excluding rent deposits and retentions) divided by last published property portfolio valuation.

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Custodian REIT plc published this content on 02 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2021 09:18:06 UTC.