Drum deal gives Custodian a valuation rise

Custodian REIT has posted a lift in the value of its portfolio in its first update since it bought Drum Income Plus REIT. The Leicester-based investment company’s net asset value rose by 12% during the final quarter of 2021 to £501.4m. The increase comprised a valuation uplift of £36.2m as well as the issue of £19.1m in new equity to pay for the Drum deal. Custodian agreed its takeover of Drum in September, closing the deal in November. The company described the target’s near-£50m portfolio of offices, retail parks and an industrial estate as “an excellent fit with Custodian REIT’s investment policy, targeting smaller regional property with a strong income focus”. At the end of the quarter almost half of Custodian’s portfolio was in the industrial and logistics space, a fifth in retail warehousing, 14% in offices and 8% in high street retail.   To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews