Custodian sells Wetherspoon pub for 12.8pc premium
UK property investment company Custodian announced the disposal of a property from its portfolio on Thursday.
The London-listed real estate investment trust sold a 22,286 sq ft public house on Palmerston Road, Southsea for £1.67m - £0.19m ahead of the 31 December 2016 valuation.
It said the property was currently let to pub operator JD Wetherspoon on a lease expiring in 2040.
The property was part of a portfolio acquired in August 2014, and the Custodian board said it intended to use the proceeds from the disposal to fund acquisitions better aligned to its long term investment strategy.
“We are delighted to crystallise a 12.8% valuation,” said Custodian Capital managing director Richard Shepherd-Cross.
“Despite the long-term lease, the yield is significantly below target and we believe the disposal proceeds can be redeployed on property with a better income yield and the potential for capital growth.”