Custodian REIT sells industrial estate for £4.6m

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Leicester-based property investment company Custodian REIT has sold a 82,081 sq ft industrial estate in Chepstow for £4.6m.

The property was purchased in January 2016 as part of a portfolio and comprises 11 units with a weighted average unexpired lease term to first break or expiry (WAULT) of about three years.

The company has said it intends to use the proceeds from the disposal to fund acquisitions “better aligned” to its investment strategy.

Richard Shepherd-Cross, Managing Director of Custodian Capital, said: “Pro-active asset management has crystallised 15 per cent rental growth since acquisition.

“The current significant demand for industrial property due to a lack of available investment stock meant we felt this was the optimum time to sell the asset, allowing us to crystallise a significant valuation gain and increase the Company’s weighted average unexpired lease term (WAULT)

“We intend to re-invest the proceeds in assets with better long-term rental growth prospects.”