Custodian Property Income REIT offloads assets at 9.5% premium ahead of abrdn merger
CREI is currently running on a 17.53% discount, according to data from the Association of Investment Companies, wider than the 14.8% discount it was at when news of the merger initially broke.
The REIT invests in commercial real estate properties in the UK and said in an RNS notice today (22 January) it had completed the sale of an industrial unit in Milton Keynes.
The £8m sale was a £700m premium, based on the trust's valuation on 30 September 2023.
The board of CREI announced last week it had agreed to an all-share merger with abrdn Property Income trust (API).
abrdn Property Income agrees to merge with Custodian Property Income REIT
CREI is currently running on a 17.53% discount, according to data from the Association of Investment Companies, wider than the 14.8% discount it was at when news of the merger initially broke.
Commenting on the latest disposal, Richard Shepherd-Cross, managing director of Custodian Capital Limited (the company's external fund manager), said: «During our nine years of ownership, we were able to generate a healthy and growing level of income from this asset.
»We made the decision to crystallise a profit for our shareholders and we expect to use the sale proceeds towards repaying the company's existing revolving debt facility."
He added: «This will further reduce our interest costs and allow the company to fund future improvements to the remaining portfolio.»
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