Nottingham student digs sold for £1.2m

Custodian REIT, the Leicester-based listed property investment company, has sold a student accommodation complex.

The company has sold a purpose-built student residential building in Lenton, Nottingham for £1.2m.

The property was part of the initial portfolio acquired on the company’s admission to the London Stock Exchange in 2014. The deal follows the disposal and placing of new shares announced on 13 May 2016, with net borrowings have decreased to 12.2% loan to value. The company says 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 (the Company’s external fund manager), said: “Due to the size and nature of use, this asset was identified as being non-core within our ongoing strategy.

“Over the last two years we have secured rental growth and now a profit on exit. We believe the proceeds can be reinvested to produce an enhanced income return which is a stronger fit with the balance of the portfolio and better supports dividends and future dividend growth.”