LondonMetric Property has sold five distribution warehouses in two transactions for £34.8m, which reflects a net initial yield of 5% and a 4% discount to the 30 September 2022 book value.
A 82,000 sq ft warehouse in Coventry, a 42,000 sq ft warehouse in Warrington and two 37,000 sq ft warehouses in Birmingham, at Golden Cross and Redfern, were sold as a portfolio for £25.5m. The properties have a WAULT of four years.
In a separate transaction, LondonMetric sold a 91,000 sq ft unit in Coventry, which is let for a further nine years, for £9.3m. The REIT said the sales crystallised an ungeared IRR of 11% and a 28% profit on cost.
Andrew Jones, chief executive of LondonMetric, said: “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 £250m and we will continue to seek out new urban and regional warehouse opportunities where we can leverage our asset management capabilities.”
