Investor offloads warehouse in multimillion-pound deal
Property investor Custodian REIT has sold an industrial warehouse in Wolverhampton three years after it bought it as part of an £11.5m portfolio.
The 119,600 sq ft property has been home to security products group Assa Abloy since 2004, and its current lease is in place until July 2023.Custodian has sold the Willenhall industrial warehouse unit for £6.6m.
It said the sale is in line with the June 2019 valuation, representing a net initial yield of 7.27%.
The property was purchased in June 2016 for £4.5m as part of a three-property portfolio.
Richard Shepherd-Cross, managing director of Custodian Capital, the company’s external fund manager, said: “Our ongoing commitment to portfolio management has led to a 42% rental increase and a significant valuation increase since acquisition.
“While the property has delivered consistent cash flow, we felt that with four years remaining on the lease and current market sentiment to the industrial sector, the time was right to dispose of the asset and crystallise the 47% valuation gain since acquisition.”
Custodian REIT said it intends to use the proceeds from the disposal to fund acquisitions better aligned to its stated investment strategy.
