LondonMetric Property has acquired a £51m portfolio and sold £22m of assets.
The £51.1m portfolio comprises a logistics warehouse let to UPS at East Midlands Airport and a hotel at Manchester Airport. The assets, which are let on very long leases with a WAULT to first break of more than 100 years, generate £2.2m of rent per annum, which is substantially below market rent of £8.2m per annum.
The 450,000 sq ft airside logistics facility is let to UPS at a rent of £1.16m per annum (£2.60/sq ft) with CPI linked reviews. The Clayton hotel at Manchester Airport provides 365 rooms and generates £1.07m of rent per annum with RPI linked reviews.
The £22.1m of disposals is made up of five former Urban Logistics REIT assets sold at a blended net initial yield of 5.4% and 5% above acquisition price. The assets comprise an urban warehouse in Redditch and a portfolio of four industrial open storage assets in Telford, Sheffield, Leigh and Northampton.
Andrew Jones, chief executive of LondonMetric, said: “We have continued to monetise assets acquired through takeovers and have now sold eight Urban Logistics REIT assets at strong prices, reflecting the ongoing demand for smaller lot sizes. The proceeds from these and previous sales have been successfully reinvested into high quality, NNN and mission critical assets, which are strongly underpinned by significant reversion and materially higher values achievable on vacant possession.”
