Custodian Property Income REIT Sells Office at 33% Premium

Custodian Property Income REIT plc has announced the sale of a vacant office unit in Solihull for £1.4 million, achieving a 33% premium over its June 2024 valuation. This sale aligns with the company's strategy to generate strong income returns by investing in a diverse portfolio of smaller regional properties across the UK.

Richard Shepherd-Cross, Managing Director of Custodian Capital Limited, highlighted the stability and average yield of 7% the asset provided over nine years. The decision to sell comes amid limited rental growth prospects, allowing the company to repay debt and fund portfolio improvements.

The transaction underscores the demand for smaller regional assets, particularly among owner-occupiers, and supports the company's efforts to minimize interest costs while enhancing shareholder returns.