LondonMetric sells five distribution warehouses for £35m

LondonMetric sells five distribution warehouses for £35m

LondonMetric Property has agreed to sell five distribution warehouses in two transactions for £34.8 million, reflecting a NIY of 5%.

Four of the assets have been sold as a portfolio for £25.5 million.

The properties have a WAULT of four years and comprise:

  • 82,000 sq ft in Coventry;
  • 42,000 sq ft in Warrington;
  • 37,000 sq ft in Golden Cross, Birmingham; and
  • 37,000 sq ft in Redfern, Birmingham.

In a separate transaction, LondonMetric has sold an additional 91,000 sq ft unit in Coventry for £9.3 million. The property is let for a further nine years and is held on a long leasehold interest with 87 years unexpired. 

Since acquisition, LondonMetric has carried out various asset management initiatives on these assets including lease re-gears, rent reviews and removal of break clauses.

The sales crystallise an ungeared IRR of 11% and a 28% profit on cost.

Andrew Jones, Chief Executive of LondonMetric, commented: “These assets have performed well since acquisition and support our early macro call into urban logistics.

“Our disposals over the last 12 months now total £250 million and we will continue to seek out new urban and regional warehouse opportunities where we can leverage our asset management capabilities.” 

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