Custodian Property Income Reit has completed the sale of a property for £2.35m.
The sale of the holding, a vacant car showroom in Redhill, comes at a 15% premium to its valuation at the end of last year.
Last week, the trust completed the sale of one property and unconditionally exchanged on another, for a combined total of £15m.
Richard Shepherd-Cross, managing director of Custodian Capital Limited, said: “Having initially considered refurbishing and reletting the asset, strong demand for the site from residential developers became apparent during the marketing period and disposing ahead of valuation to fund improvements to the remaining portfolio was deemed more accretive to shareholders.”
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API merger
The sales come almost a month after the trust’s merger with Abrdn Property Income Trust (API) fell through.
While 98% of Custodian Reit’s shareholders approved the merger, API failed to gain the required votes from its shareholders at its annual general meeting.
One week before the AGM, API had sold two properties at book value, which led to some analysts suggesting the merger may not be in the best interests of shareholders.
