Custodian REIT has sold a 22,286 sq ft public house in Southsea in Hampshire for £1.7m.
The building on Palmerston Road is let to JD Wetherspoon on a lease expiring in 2040.
The property was part of a portfolio acquired in August 2014. The REIT said it intended to use the proceeds from the disposal to fund acquisitions better aligned to its long-term investment strategy.
Richard Shepherd-Cross, managing director of Custodian Capital, said: “We are delighted to crystallise a 12.8% valuation. 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.”
• To send feedback, e-mail alex.peace@estatesgazette.com or tweet @egalexpeace or @estatesgazette
