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Custodian Property Income REIT PLC on Wednesday said the Merlin properties are ‘integrating well’ following the transaction earlier this year. Back in June, the Leicester, England-based real estate investment trust said it purchased a £22.1 million portfolio via the acquisition of family property firm Merlin Properties Ltd. Since the transaction, Custodian Property said Merlin occupancy remains strong at near 100%, with opportunities identified to drive value from higher rental income from upcoming lease events. The REIT said the deal has generated ‘immediate capital upside’ through the disposal of two non-core Merlin properties for £600,000, in aggregate 16% above the purchase price. It added that a further five non-core assets sold 46% ahead of purchase price at a recent auction. These sales are expected to bring in £2.2 million upon completion later this month. Custodian Property added that these proceeds are to be ‘recycled into value enhancing opportunities within the wider portfolio’. Shares in the trust were 2.2% higher at 78.51 pence on Wednesday afternoon in London. ‘The ongoing disposal of non-core assets has already crystallised a profit and once again demonstrates both our ability to achieve sales ahead of purchase price as well as the continued strength of purchaser demand for smaller lot-sized assets. We expect to use the proceeds to fund improvements to the existing portfolio and our ongoing share buyback programme,’ said Richard Shepherd-Cross, managing director of Custodian Capital Ltd, the company’s investment manager. ‘Looking ahead, we hope to position the company for further growth by targeting similar opportunities for increased scale, which offer a more liquid investment and attractive income returns, while providing tax efficient solutions for family property companies in the UK.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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