LondonMetric has exchanged on the sale of its distribution warehouse in Reading to EQT Exeter for £60.6 million.
The 229,000 sq ft warehouse is let to DHL.
LondonMetric acquired the property in 2015 with ten years on the lease for £29.1 million, reflecting a NIY of 5.7%. Since acquisition, LondonMetric settled the 2020 open market rent review at 28% above previous passing.
LondonMetric said the sale is 20% above the 30 September 2021 book value and will crystallise an ungeared IRR of 15%.
Completion of the transaction will take place in November 2022.
Andrew Jones, Chief Executive of LondonMetric, commented: “This is a very good asset that has performed strongly, which was reflected in the quality and depth of demand we had from potential buyers. We will look to redeploy the proceeds into urban logistics assets around London and NNN income properties, which remain our strongest conviction calls.”