LondonMetric Property has simultaneously exchanged and completed on the sale of a portfolio of three multi-let industrial estates for £46m to an unnamed buyer. The sale reflects a NIY of 5.8% and the disposal price is slightly above book value as at 30 September 2022.
Two estates – Coleshill and Stirchley – are located in Birmingham and the Enterprise estate is located in Dudley. The estates, which were acquired as part of LondonMetric’s Mucklow acquisition in June 2019, offer a total 446,000 sq ft across 113 units and generate £2.9m per annum of rental income, with a WAULT to first break of 2.7 years.
Andrew Jones, chief executive of LondonMetric, said: “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.”
LondonMetric was advised by ACRE. The purchaser was advised by JLL.
