LondonMetric has sold a portfolio comprising six distribution warehouses for £57.3m to AIMCo and Canmoor.
The sale price reflects a blended net initial yield of 5.3%.
The warehouses, most of which were built in the 1990s, are located in Worcester, Leamington Spa, Royston in Hertfordshire, Castle Donnington, Milton Keynes and Huyton in Merseyside.
Tenants include retailer Hamleys, CEVA, ITAB, Transmec and JLR automotive supplier Groupo Antolin and the portfolio has a WAULT to break of 7.5 years.
LondonMetric said the portfolio sale would deliver an £8.8m profit on cost and an ungeared IRR of 11% per annum.
The deal will not be completed until 25 March 2021 to enable LondonMetric to receive around £1.5m of additional rent, but once it is total receipts will be 3.8% above March 2020’s book value.
Andrew Jones, chief executive of LondonMetric, said: “The attractive demand – supply dynamics in distribution and the increasing weakness in legacy sectors – is attracting substantial capital into the logistics sector from both new and existing investors.”
“While we seek to avoid unnecessary asset turnover, we will always take advantage of strong approaches for our assets. These proceeds will be reinvested into other quality opportunities in the strongest geographies where rental growth over the long term will be superior.”
LondonMetric was advised by Acre Capital Real Estate on the deal.
To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette
