LondonMetric has sold four properties, in two separate transactions, for £25.6 million, reflecting a blended NIY of 5.3%.
LondonMetric said the properties have a WAULT of five years.
The company sold a portfolio of three multi-let industrial assets totalling 53 units across 235,000 sq ft, located in Halesowen and Aston, Birmingham. The properties have a WAULT of three years and have been sold to The Ardent Companies UK for £21.6 million, reflecting a NIY of 5.7%. They were acquired by LondonMetric in 2019 as part of the Mucklow acquisition for an allocated price of £15.8 million and have delivered an ungeared IRR of 20%; and
Additionally the REIT sold a roadside asset in Stamford Hill, London, which has been sold for £4.0 million, reflecting a NIY of 3.5%. The property is let to TG convenience for a further 19 years.
The assets generate a rent of £1.5 million p.a. and the transactions are subject to delayed completions, which will generate £0.3 million of additional income to LondonMetric.
The sales crystallise a blended ungeared IRR of 19% and a 35% profit on cost. Since the start of the current financial year, LondonMetric has exchanged on £111 million of sales at an average premium of 8% to the 31 March 2022 book value.
Andrew Jones, Chief Executive of LondonMetric, commented: “We have continued to react to market interest for our assets and, despite the current macro uncertainty, have achieved strong sales that crystalise attractive returns. This activity continues to ensure that our portfolio remains modern, fit for purpose and positioned to outperform.”