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.
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