Monday, April 15, 2024

Leicester property investor sells two industrial units

Leicester property investor Custodian Property Income REIT has sold two industrial units.

A site in Weybridge has been disposed of for £6m, while the firm has unconditionally exchanged on the disposal of a vacant industrial unit in Warrington for £9m.

The Warrington disposal is expected to complete in mid-April 2024 and total proceeds from the disposals of £15m will be used towards repaying the company’s existing revolving debt facility.

Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the company’s external fund manager), said: “Whilst planning consent has been received to redevelop the Warrington site we believe that, due to a lack of occupier demand and the ability to crystallise a substantial profit for our shareholders, now is the best time to sell.

“Selling vacant property is particularly accretive to earnings by both saving void costs and reducing interest expense.

“The Weybridge asset has provided a healthy level of income over its four years of ownership and having re-let the unit in 2022 at an increased level of rent, we believe future rental growth may not meet our income growth expectations going forwards so we have made the decision to sell.”

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