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Custodian REIT sells its Stourbridge property for £2.25mln

Custodian REIT said it intends to use the proceeds from the disposal to fund acquisitions better aligned to its stated investment strategy

Custodian REIT
Custodian Reit said the property was part of the initial portfolio, acquired in 2014

Custodian REIT PLC (LON:CREI) has announced the disposal of a 15,229 sq feet five-unit retail development in Stourbridge for £2.25mln, in line with the 31 March 2018 valuation.

The UK property investment company said the property was part of the initial portfolio acquired on the company’s admission to the London Stock Exchange in 2014.

READ: Custodian REIT raises dividend target, says property market is competitive

Custodian REIT said it intends to use the proceeds from the disposal to fund acquisitions better aligned to its stated investment strategy.

Richard Shepherd-Cross, managing director of Custodian Capital Limited, said: “We believe this asset is no longer aligned with the strategy of the company.”

He added: “While the property has delivered consistent cash flow from excellent tenants, supporting the dividend policy, we are not confident of future rental growth potential and believe disposal proceeds can be redeployed on property with greater prospects for income and capital growth.”

Quick facts: Custodian REIT

Price: 84 GBX

LSE:CREI
Market: LSE
Market Cap: £352.84 m
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