The sum which was £0.5mln, or 23% ahead of the March 31, 2020, valuation of the property, represents a net initial yield of 4.50%
PLC (), the UK property investment company, has raised £2.8mln after the disposal of a property from its portfolio.
The company said it has sold a 20,280 square foot industrial warehouse unit in Westerham, Kent for the sum which was £0.5mln, or 23% ahead of the March 31, 2020 valuation of the property, representing a net initial yield of 4.50%.
It noted that the property was purchased in September 2016 for £1.6mln as part of a 10 property portfolio.
Following the disposal, the group said its net gearing has decreased to 22.4%.
Commenting on the sale, Richard Shepherd-Cross, managing director of Custodian Capital Limited – the REIT’s external fund manager – said: “A special purchaser was identified for this property in 2019. The disposal completed at the price agreed before the (coronavirus) COVID-19 pandemic hit, reflecting a 4.50% net initial yield, which crystallised a profit and improved the Company’s liquidity position.”
“We expect the proceeds to be deployed on better yielding assets once markets stabilise,” he added.