LondonMetric Property has sold a portfolio of three multi-let industrial estates for £46 million, which reflects a NIY of 5.8%.
The disposal is slightly above book value as at 30 September 2022, the REIT said.
The estates total 446,000 sq ft across 113 units and generate £2.9 million p.a. of rental income, with a WAULT to first break of 2.7 years. Two of the estates are located in Birmingham (Coleshill and Stirchley) and the third is located in Dudley (Enterprise).
The properties were previously acquired as part of the Mucklow acquisition in June 2019. Since the Mucklow transaction, over £140 million of Mucklow assets have now been sold, reflecting a 24% uplift against allocated cost.
The sales announced today crystallise an ungeared IRR of 19%.
Andrew Jones, Chief Executive of LondonMetric, commented: “These assets have generated returns significantly above our initial expectations from accelerated rental growth and material yield compression. However, our portfolio is heavily focussed on triple net income and so this is an opportune time to crystallise our investment in multi-let estates.
“Together with our other recent sales, this disposal puts us in a strong position to take advantage of new opportunities that we expect to see across the urban and regional warehouse markets.”
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