Market's view on Cust Prop Inc
Published on April 2024
- A property disposal was completed at a 15% premium to its valuation as of 31 December 2023.
- The disposal includes an empty property, bringing cash in hand and savings on operating costs.
- Another notable transaction was the sale of a vacant industrial property in Warrington with planning permission, which sold for a 61% premium.
- Concerns about the vulnerability of the company to a takeover were raised, following a failed merger with API, where the stock was affected and considered undervalued.
- There was a mention of potential informal offers by CREI and SHED for API assets.
- Richard Shepherd-Cross, CEO of Custodian Capital, was praised for his leadership and the strong team he has built, who are well-versed in their property portfolio.
- Discussions involved Custodian REIT potentially benefiting from acquiring top assets from API’s wind-up, which could turn advantageous despite the merger failure.
- Pollen Street Capital’s acquisition of Mattioli Woods might positively impact Custodian REIT by potentially increasing the funds available for expanding the portfolio.
- There is speculation on market reactions and strategic moves post failed merger, with some stock watchers considering the sales of their shares following a surge in stock price.