A prominent Scottish city centre office building has been sold for £6 million.
Custodian Property Income REIT, which announced the sale of the building yesterday, highlighted the fact that the price represented a 24% premium to the September 30, 2025, valuation.
The UK real estate investment trust noted that Monteith House, on George Square in Glasgow, is fully let to a single tenant with an annual passing rent of £0.5m.
It added that the asset was acquired as part of the DRUM Income Plus portfolio acquisition in November 2021.
Richard Shepherd-Cross, managing director of Custodian Capital, said: “We have received a healthy level of income on this property for the period of our ownership. With less than five years remaining on the current lease and some uncertainty regarding renewal with the existing tenant, we believe that without significant capital expenditure, this asset has limited scope for future rental growth.
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“Due to these factors, we felt that now is the right time to sell and crystallise a 24% premium to the 30 September 2025 valuation, demonstrating our ability to complete sales above book valuation, as well as the continued demand for well-located office assets. We expect to use the proceeds to repay variable-rate debt, aligning with our strategy of providing shareholders with strong income returns.”
Custodian Property Income REIT listed on the main market of the London Stock Exchange on March 26, 2014.
It noted that its portfolio comprises properties predominantly let to institutional-grade tenants throughout the UK and is "principally characterised by smaller, regional, core/core-plus properties".
Custodian Property Income REIT added: “By principally targeting smaller, regional, core/core-plus properties, the company seeks to provide investors with an attractive level of income with the potential for capital growth."
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