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