Hermes Real Estate has completed on the sale of the Sovereign Portfolio to Custodian REIT plc for GBP17.39 million.
The portfolio consists of nine properties located throughout England and Scotland with six single-let high street assets, two multi-let high street assets and one retail warehouse.
The portfolio comprises: 14 Cornhill Street, Bury St Edmunds; 10 Watergate Street, Chester; 2/6 Long Wyre Street, Colchester; 165/171 High Street, Dumfries; 489 Aylestone Road, Leicester; 28-29a Pride Hill, Shrewsbury; 54 Above Bar Street, Southampton; 84/90 Palmerston Road, Southsea; and 19-23 Palmerston Road, Southsea.
Chris Taylor, CEO of Hermes Real Estate, says: “2014 has been an active year for Hermes Real Estate so far as we look to maximise on cyclical opportunities within the market through well timed acquisitions and disposals. The sale of the Sovereign Portfolio is part of this wider diversification.”
Richard Shepherd-Cross, fund manager to Custodian REIT plc, says: “Since IPO on 26 March 2014, Custodian REIT has invested over GBP36 million. The Sovereign Portfolio makes up an important part of this and has a strong fit with our investment strategy: to invest in a diversified, nationwide portfolio characterised by small lot sizes. The price of GBP17.39 million reflecting a net initial yield of 6.95 per cent, as part of the wider fund, supports a target annualised dividend of 5.25 per cent (of the issue price) in year to March 2015 and 6.25 per cent thereafter.”
Fawcett Mead represented Hermes Real Estate, while Custodian REIT plc was represented by CWM & Partners.