LondonMetric divests warehouse in Solihull for £21m

LondonMetric divests warehouse in Solihull for £21m

LondonMetric Property has agreed to sell a DHL logistics warehouse in Solihull for £20.5 million, reflecting a NIY of 4.15% with a rent review due later this year.

The sale is at a small premium to the 31 March 2023 book value, the REIT said.

The 142,000 sq ft warehouse was acquired in 2017 as part of a portfolio with an allocated purchase price of £15.7 million and a WAULT of two years. LondonMetric regeared the property in 2018, extending the lease to ten years with a break after five years. Following removal of the break recently, six years remain on the lease.

The sale crystallises an ungeared IRR of 9%.

Andrew Jones, Chief Executive of LondonMetric, commented: “With the recent strengthening in the investment market, we have reacted to an opportunistic off market approach to sell this warehouse. The proceeds of the disposal will be used to further reduce our floating rate debt and LTV.” 

Click here to receive CRE Herald’s weekly newsletter, news alerts and insights!