UK Commercial Property REIT (UKCM) has sold its 186,455 sq ft Wembley180 logistics asset in London for £74 million, reflecting a net initial yield of 3.49%.
The REIT sold the asset to Covent Garden IP (CG), a registered charitable company.
UKCM has owned the property since 2009 and completed a refurbishment of the logistics asset in 2019 when it let the unit to a global e-commerce company until 2029.
UKCM will primarily use the proceeds to enhance earnings by paying down a substantial amount of its £93 million floating rate Rolling Credit Facility (RCF, currently costing 6.3% pa.
Will Fulton, Lead Manager at UKCM, comments: “This disposal allows us to crystallise the value we have created through both the timely acquisition of an asset in a prime London logistics location and our subsequent active asset management of the property, including a long lease to a global ecommerce business. We will use proceeds of the sale to enhance earnings, primarily by paying down some short-term debt.”
Dale Bills, spokesman for CG, comments: “The purchase of Wembley180 furthers our efforts to make prudent, long-term investments. Earnings from our investments are expected to support the religious and charitable work of The Church of Jesus Christ of Latter-day Saints in the United Kingdom.”
Click here to receive CRE Herald’s weekly newsletter, news alerts and insights!