Custodian Property Income REIT Completes Significant Property Sales

Custodian Property Income REIT (CREI) announced the completion and exchange of significant property sales in the UK. The industrial unit in Weybridge was sold for £6.0m, and the vacant industrial unit in Warrington is set to exchange for £9.0m. These disposals were announced previously and have now exceeded their December 2023 valuations by notable margins.

The Warrington property’s sale, expected to finalize in mid-April 2024, will bring total proceeds from the disposals to £15.0m. Funds from these sales are earmarked for the reduction of the company’s revolving debt, contributing to a 2% reduction in LTV.

Richard Shepherd-Cross, Managing Director of Custodian Capital Limited, highlighted the strategic rationale behind these sales. The Warrington site's redevelopment was reconsidered due to low occupier demand, enabling the realization of a significant profit for shareholders. The decision to sell further aligns with the goal of enhancing earnings by eliminating void costs and interest expenses.

These sales reflect Custodian REIT’s strategic approach to property management and investment, aiming for a combination of income generation and growth potential for its investors through a diversified property portfolio.