The Company has sold a 82,081 sq ft multi-let industrial estate in Chepstow for £4.63 million, circa £0.9 million (25%) ahead of valuation and representing a net initial yield on sale price1 of 6.75%.
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 circa three years. The Company intends to use the proceeds from the disposal to fund acquisitions better aligned to its investment strategy.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s external fund manager), said:
“Pro-active asset management has crystallised 15% rental growth since acquisition. The current significant demand for industrial property due to alack 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 WAULT. We intend to re-invest the proceeds in assets with better long-term rental growth prospects.”