Custodian Property Income REIT has purchased a £22.1 million ($30 million) portfolio via the all-share acquisition of Merlin Properties Limited.
Since completion of the transaction, the Merlin properties have integrated well into the company’s portfolio. Merlin occupancy remains strong, at almost 100 percent.
The transaction has also generated immediate capital upside with the disposal of two non-core Merlin properties for £600,000 ($803,000), in aggregate 16 percent ahead of purchase price. Five more non-core assets recently sold at auction 46 percent ahead of purchase price, with the sales expected to generate proceeds of £2.2 million ($3 million) in aggregate when they complete later this month. The proceeds of these sales will be recycled into value-enhancing opportunities within the wider portfolio.
“A key element of our growth strategy is to seek select opportunities to scale the business and enhance earnings through corporate and/or portfolio
