(Alliance News) - Custodian REIT PLC on Wednesday said it sold a 24,178 square foot car showroom in Derby let to Germany automaker Volkswagen AG.
The GBP5.6 million sale was GBP1.2 million, or 26%, ahead of its March 31 valuation, the Leicester, England-based real estate investment trust said. The price tag represents a 5.7% net initial yield.
"This asset has provided a healthy level of income over our five years of ownership and is being sold to a 'special purchaser' at a significant profit. We have a strong pipeline of assets on which to redeploy the proceeds of this sale with better rental growth and asset management prospects," said Richard Shepherd-Cross, managing director of Custodian REIT's external fund manager, Custodian Capital Ltd.
Custodian REIT shares were 1.5% higher at 102.30 pence each in London on Wednesday morning.
By Tom Budszus; tombudszus@alliancenews.com
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