LondonMetric has sold a portfolio of three multi-let industrial estates for £46m.
The deal, to an unnamed client of JLL, reflects a net initial yield of 5.8%, with the disposal price slightly above the September 2022 book value and an ungeared IRR of 19%.
The estates total 446,000 sq ft across 113 units and generate £2.9m pa of rental income, with a WAULT to first break of 2.7 years. Two of the estates, Coleshill and Stirchley, are in Birmingham, while the third, Enterprise, is in Dudley.
LondonMetric bought the properties as part of its Mucklow acquisition in June 2019. Since that deal over £140m of Mucklow assets have been sold, reflecting a 24% uplift against allocated cost.
Chief executive Andrew Jones 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.
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
